Question 7 True or False

7-1: Free cash flow is net cash provided by operating activities less capital expenditures.

7-2 Vertical analysis of financial statements is accomplished by preparing common-size statements.

7-3 The formula for the net profit margin percentage is: Net profit margin percentage = Net income Sales.

7-4 The formula for the times interest earned ratio is: Times interest earned = Earnings before interest expense and income taxes Interest expense.