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1. True/False: If EBIT = $10,000, depreciation = $5000 and taxes = $2000, operating cash flow < $10,000 2. True/False: If the increase in common

1. True/False: If EBIT = $10,000, depreciation = $5000 and taxes = $2000, operating cash flow < $10,000

2. True/False: If the increase in common stock = $2000 and cash flow to owners = $9000, dividends < $10,000

3. True/False: The payment of both interest and dividends is not a source of funds

4. True/False: Other things equal, the greater the dividends, the lower the cash flow to owners will be

5. True/False: Other things equal, the greater the increase in long-term debt, the lower the cash flow to creditors will be

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