Exhibit 12-3 Stalwart Inc. accounting records show the following changes during the company's most recent fiscal year. 1. Gain on sale of 2. Loss on sale of long-term investments 3. Decrease in prepaid expenses 4. Increase in accounts receivable 5. Decrease in merchandise inventory 6. Decrease in wages payable 7. Increase in accounts payable 8. Payment of cash dividends 9. Purchase of machinery 10. Payments of principal on bonds payable 11. Proceeds from sale of long-term investments Refer to Exhibit 12-3. Which of these would be deducted as part of the cash flows from financing activities section, when preparing the statement of cash flows? 8.9.& 10 O 8 & 10 O 2,8,9, & 10 None of the answer choices is correct. Genoa Equipment Company has three separate divisions: Tractors, Trailers, and Trucks. Information about the three divisions follows: Tractors Trailers Trucks Operating income $10,125,000 $ 19,500,000 $3,600,000 Operating assets $15,000,000 $78,000,000 $13,500,000 The company has recently implemented a new performance evaluation system. Based on this new system, a division manager would only receive a bonus if the ROI of the division was greater than 45% and residual income was in excess of $6,000,000. If management uses a cost of capital rate of 22%, which division manager(s) would be eligible for a bonus? O The Trucks Division. The Trailers Division. The Tractors Division, All of the divisions The cost-plus approach is the best approach for establishing transfer prices for all companies. O True O False When using the net book value to calculate return on investment (ROI), division managers controlling newer assets with little accumulated depreciation have an advantage over division managers controlling older assets with more accumulated depreciation. O True O False Only information from the income statement is needed to make adjustments when preparing the operating activities section of the statement of cash flows using the indirect method. True False