11 Lease payments are classified as a. capital improvements b. financing cash flows c. investing cash flows d operating cash flows 12. The amount reported on the balance sheet for pension and other post-employment obligations, also known as funded status a. is the future value of all expected cash flows from the pension funds b. is a net amount consiting of projected benefit obligations less pension plan assets c. is the non-risk adjusted sum of all expected cash flow disbursements from pension contributions d the adjusted market value of current pension fund cash holdings 13 A stock recently paid its quarterly dividend of .30 cents. If the required rate of return for this stock is 10.25%, and the growth rate is 6%, value this stock. Value this stock. a. 19.92 b. 21.00 c. 24.00 Page 12.19 (Chapter 12) Watch quarterly - See Gordon Model d. 29.93 14 Companies that use LIFO a. will not show any material difference on financial statements than if they had used FIFO b. should prepare parallel statements using FIFO c. are not required to report their LIFO reserve 610 d must report their LIFO reserve 15 Gross profit would bo highest using (under inflationary conditions) a. any inventory costing method, it is all the same b. Average Cost (AC) c. LIFO d FIFO