2. Equipment costing $100,000 with accumulated depreciation of $40,000 is sold at a loss of $10,000. The cash received from the sale was $40,000. True FALSE 3. A company's board of directors analyzes financial statements to assess future company prospects for investing and lending decisions. True FALSE 4. Sleep Sack had net sales of $650,500, its cost of goods sold was $357,000, and its profit was $13,750. The gross margin ratio was 45.1%. True FALSE 5. The three-step process in determining net cash inflows (outflows) from investing activities are: (1) identify changes in investing-related accounts; (2) explain these changes using reconstruction analysis; (3) report cash flow effects. True FALSE