Write True if the statement is correct. False if otherwise. 1. C Corporation owns 30% and 40% interest in U Corp. and D, Inc.respectively. D. Inc. In turn owns 85% interest in U Corp. The total interest of C Corp. In U Corp. Must be 64%. 2. Free cash flow differ from net cash flow because it takes into consideration the firm's investment in workingf capital and fixed asserts. 3. Purchase of inventory in account would increase the acid test ratio. 4. According to Dupont analysis, an increase in net profit margin will decrease return on assets. 5. Transactions that increases current assets and current liabilities by the same amount improve a positive current ratio. 6. When the tax rate decreases, the amount of free cash flow will increase. 7. A company can improve its acid test ratio by selling some equipment it no longer need for cash. 8. When the present financial ratios of the firm are compared with similar ratios of the another firm with the same industry, it is called trend analysis. 9. The company's acid test ratio will always be less than or equal to its current ratios. 10. Net cash flow represents the accounting profit added by depreciation and other non-cash deduction 11. The balance sheet provides a snapshot of the firrn's financial position over a given period of time. 12. The goal of profit maximization is equivalent to the goal of maximization of share value. 2020-12-04