PART I : TRUE OR FALSE (T OR F) 1Other comprehensive income includes all changes in stockholder's equity during a period including those changes resulting from investments by stockholders. 2. The three basic tools of analysis are horizontal analysis, vertical analysis, and ratio analysis. 3.A percentage change can be computed only if the base amount is zero or positive. 4. A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions. 5. A statement of cash flows should help investors and creditors assess the entity's ability to generate future income. The sale of land for cash would be classified as a cash inflow from an investing activity. 6. PART Il: MULTIPLE CHOICE (CIRCLE YOUR ANSWER) 7. Dean Corporation reported net income $58,000, net sales $500,000, and average assets $800,000 for 2020. The 2020 profit margin was: 5.8% 11.6%. 62.5%. 16096. a. b. C. d. 8. Earnings per share is calculated a. only for common stock. b. only for preterred stock. c. for common and preferred stock. d. only for treasury stock 9. Which of the following is not a profitability ratio? Payout ratio b. a. Profit margin Times interest earned d. c. Return on common stockholders' equity 10. The statement of cash flows will not report the a. amount of checks outstanding at the end of the period b. sources of cash in the current period. c. uses of cash in the current period. d. change in the cash balance for the current period 11. Each of the following are particularly interested in the statement of cash flows except a. creditors. b. employees c. shareholders d. government agencies