11) Which one of the following is a cash flow from a corporation into the financial markets? A) Borrowing of long-term debt B) Sale of common stock C) Payment of government taxes D) Payment of loan interest E) Issuance of corporate debt 12) 42) Winston Industries had sales of $843,800 and costs of $609,900. The company paid $38,200 in interest and $35,000 in dividends. The depreciation was $76,400. The firm has a combined tax rate of 24 percent. What was the addition to retained earnings for the year? A) $56,200 CB) $55,668 C) 557,240 D) $68,400 E) $61,060 13) 13) Which term relates to the cash flow that results from a company's ongoing, normal business activities? A) Cash flow to creditors B) Capital spending C) Networking capital D) Cash flow from assets E) Operating cash flow 14) 14) Global Tours has beginning current assets of $1,360, beginning current liabilities of $940, ending current assets of $1.720, and ending current liabilities of $1,080. What is the change in net working capital? A) $170 B) $220 C) $940 D) $190 E ) $1,060 15) 15) Which one of the following is true according to generally accepted accounting principles? A) Income is recorded based on the realization principle. B) Costs are recorded based on the realization principle. C) Depreciation is recorded based on the recognition principle. D) Costs of goods sold are recorded based on the recognition principle. E) Depreciation is recorded based on the market value principle. 16) 16) The value of which one of the following is included in the market value of a firm but is excluded from the firm's book value? A) Copyright B Employee's experience C) Distribution warehouse D) Land acquired over 25 years ago E) Office equipment