A Moving to another question will save this response. Question 26 Which of the following is a cash inflow from investing activities? Purchasing a new vehicle with a car loan Trading in a vehicle for a newer model Selling a vehicle for cash Purchasing a new vehicle for cash Moving to another question will save this response. esc F1 F2 DOO OOD F3 FO A Moving to another question will save this response. Question 27 If cash flows differ significantly from GAAP net income The company may have miscalculated operating cash flows or GAAP accruals The firm may have low-quality earnings that do not provide a meaningful signal of performance The firm may be a mature company that is returning money to shareholders instead of investing in new projects The net change in cash on the cash flow statement may not reconcile to the change in cash from the comparative balance sheets Question 28 All of the following are measures of productivity except: Asset turnover Gross margin Cash conversion cycle Inventory turnover Question 29 All of the following are non-cash transactions except: Depreciation Gains and losses on sales Issuance of common stock Mortgaged purchases of land and buildings Question 30 Research and development costs Represent valuable assets for firms in many industries, such as technology and pharmaceuticals Are excluded from analyses of future income and cash flow Are capitalized on the balance sheet Are expensed as incurred Question 25 A short cash conversion cycle may indicate The company sells inventory relatively slowly The company's customers pay their bills relatively slowly The company is slow to pay its outstanding bills The company carries a low cash balance Question 23 The liabilities-to-equity ratio Is generally similar across industries on average Should generally not exceed 1 for a healthy firm Captures one dimension of profitability Can vary greatly with a firm's capital intensity Book value Is equal to the value of equity from the balance sheet Is rarely less than market value Captures a firm's future opportunities for growth and profitability Is equal to the current stock price times the number of shares outstanding Question 19 Which of the following is true of corporate disclosure? Corporate disclosures are costless to produce. Disclosure may be mandatory or voluntary. A transparent disclosure policy may result in higher cost of capital and lower stock prices for a firm due to information asymmetry. Firms may choose to disclose material nonpublic information to select groups of stakeholders