7. Depreciation expense would decrease both net income and cash flow from operating activities. do you think that this statement is true? Why or why not? Explain.

8. Suppose XYZ Corp. owns 40% of the common stock of ABC Corp. On December 31, 2020, ABC announces a net income of $50 million. Explain how ABCs earnings of $50 million would affect the XYZs assets account and income statement.

9. Explain the key differences between stock splits, stock dividend, and cash dividend. How does each of them affect the retained earnings and total stockholders equity?