Question 6 2 pts Statement 1: Net income as it is computed on the income statement is not cash flow. A primary reason is that depreciation, a noncash expense, is deducted, when net income is computed. Statement 2: Cash flow from assets equals cash flow to creditors and stockholders. Both statements are false. Statement 1 is false and Statement 2 is true. Statement 1 is true and Statement 2 is false. Both statements are true. Question 7 2 pts In 2018, The Inn had an operating cash flow of $1,284,500, its net fixed asset account declined by $80,000, and its depreciation expense was $113,000. Also, during the year net working capital increased from $66,000 to $69,000. What is the company's cash flow from assets? Cash flow from assets = $ 1,171,500 Cash flow from assets = $ 1,248,500 Cash flow from assets = $ 1,394,500 Cash flow from assets = $ 1,474,500 Question 8 2 pts The Hotel provides you with the following information: net income = $110,000, depreciation expense = $40,000, interest expense = $20,000, and the tax rate = 15%, what is the operating cash flow? $ 42,500. $ 84,500 $ 153,500. O $ 170,000. $ 186,500 Question 9 2 pts Which of the following accurately describes the relationship between book and market value? Book value is an accounting summary of value and is inferior to market value as a source of current information regarding the true value of the firm. The goal of financial management is to maximize the market value of the stock, not its book value. Financial managers should rely on book values, and not market values, when making decisions for the firm, because the firm's tax liability is based on book values. Market value always exceeds book value. The market value of current assets is often difficult to determine, and thus of little value to the decision-making process of financial managers. None of the above