Determine whether the statement is true or false.

1. NewCos have accumulated large amounts of Cash with Net Cash position reversing the Net Debt position of the OldCos.

• Companies have become significantly more capital intensive and NewCos require significantly more PP&E as do the OldCos.

• Companies have experienced significant increases in accounts receivable because of cash based sales in direct to consumer businesses.

• Not only have the Non-Cash Working Capital decline for OldCos, NewCos require dramatically lower (negative) levels.

• Tangible Capital Invested in Operations (Tangible CIO) has declined consistently and NewCos have significantly less than that of OldCos.