dividend payout ratio An example of an item that is deducted from net income when preparing the operating activities section of the statement of cash using the indirect method is One rationale for the statement of cash flows is to Which of the following statements is false? Which of the following would not be a cash flow from investing activities? If a firm is growing and expanding its accounts receivable and inventories faster than its current operating liabilities its cash flow from operation will normally be Which of the following statements about the statement of cash flows is correct? As products move through the maturity phase, companies invest to ___________ productive capacity

1. dividend payout ratio

dividends over net income

2. An example of an item that is deducted from net income when preparing the operating activities section of the statement of cash using the indirect
   method is

income from an investment accounted
for using the equity method.

3. One rationale for the statement of cash flows is to

reconcile differences between net income
and cash receipts and disbursements.

4. Which of the following statements is false?

Sale of equipment creates investing
cash outflow equal to its selling price.

5. Which of the following would not be a cash flow from investing activities?

Collection of interest revenue on a
long-term note receivable.

6. If a firm is growing and expanding its accounts receivable and inventories faster than its current operating liabilities its cash flow from operation will normally be

less than net income

7. Which of the following statements about the statement of cash flows is correct?

Cash dividends received on stock investments
are classified as cash flows from operating activities.

8. As products move through the maturity phase, companies invest to ___________ productive capacity.

maintain

9. Assume the following for ABC Corp.
   
   Net income = $120 million
   Cash flow from operations = $110 million
   Dividends paid = $100 million
   
   Dividend payout ratio for industry = 50%
   
   What is the dividend payout ratio, and is
   this dividend at risk?

83%, yes... dividends paid / net income... compare to industry payout ratio

10. A cash inflow from financing activities
    includes:

proceeds from issuance of bonds payable.