18. If a firm earns a profit, it will necessarily also generate a positive cash flow.

True

False

13. In cash budgeting, the impact of depreciation is reflected in a reduction in tax payments.

True

False

10. & 11.

10.The largest single source of funds for the firm in 2019 is ________. (See Table 4.1)

Group of answer choices

an increase in net profits after taxes

an increase in notes payable

an increase in long-term debt

an increase in inventory

11.Common stock dividends paid in 2019 amounted to ________. (See Table 4.1)

Group of answer choices

$100

$50

$600

$150

Table 4.1 2018 200 $ 600 200 1,000 1,800 2,800 800 True Sandpaper Co. Balance Sheets For the Years Ended 2018 and 2019 2019 Assets Cash $ 800 Marketable securities Accounts receivable 1,200 Inventories 2,000 Gross fixed assets 3,000 Less Accumulated Depreciation 1,000 Net fixed assets $2,000 Total assets $6,200 Liabilities Accounts payable 200 Notes payable 800 Accruals 100 Long-term debt 2,000 Stockholders' equity Common stock at par 500 Paid-in capital in excess of par 2,000 Retained earnings 600 Total liabilities and equity $6.200 Net profits after taxes for 2015: $150.00 $2,000 $5,600 100 900 100 1,500 500 2,000 500 $5,600