An income statement may be represented as follows: O Sales - Liabilities = Profits. O Revenues - Liabilities - Net Income. O Sales - Expenses = Retained Earnings. Sales - Expenses = Profits. The increase in owners' equity for a given period is equal to O positive net cash flow minus dividends. O income minus dividends. Osales minus dividends. Ogross profit minus distributions to shareholders. Capital markets are all the financial institutions that help a business raise long-term capital. True O False Two companies have identical assets and operating activities. Which of the follow statements is true? Both companies have the same net income The company with more debt will have lower operating income due to interest expense. The company with more debt will have higher operating income due to leverage. The company with more debt will have lower net income due to interest expense