1-30. For the following questions, indicate TRUE or FALSE. 1. Treasury stock represents a reduction in stockholders' equity. 2. A company can manufacture 4,000 units per day. This is a production constraint. 3. The operating section of the cash flow statement prepared on the indirect method converts accrual basis net income to operating cashflow. 4. A cash dividend reduces stockholders' equity. 5. Contribution margin is the excess of sales over variable costs. 6. The relevant range is the span of activity in which a cost will behave as expected. 7. A variable cost cannot be a manufacturing overhead cost. 8. The date on which the board of directors declare a dividend is the Declaration Date. _9. It is possible to increase net income by lowering the sales price of a product. _10. The master budget includes individual budgets for sales, production or purchases, various expenses, capital expenditures, and cash. __11. Depreciation would be added back to net income in the cash flow operating section prepared on the indirect method because it is an expense that did not use cash. __12. If accounts receivable increased from the beginning to the end of the year, it would be indicative that not all of this year's credit sales were collected. _13. The principal focus of managerial accounting is to provide financial information for decision-making by EXTERNAL users. _14. The breakeven point is where revenue equals total cost. _15. The indirect costs of production are called manufacturing overhead