Question 8. Quantitatively and qualitatively draft an argument supporting the following statement: "The Statement of Cash Flows and Free Cash Flow are not the same thing and, ceteris paribus, accountants are more interested in Statement of Cash Flows and investors are more interested in Free Cash Flow." Assume this statement is true. (This question is worth I point.) Questions 9: Use the income statement below for this question. (This question is worth 2 points.) Change Income Statement 10,000 12,500 -20.00% Ghen Sales Operating costs excluding deprecation Depreciation and amortition Earnings before interest and taxes 9,000 350 Given Ghen Calc 9,500 700 2.300 -5.26% -50.00% -71.74% 650 Given Calc Interest Pre-tax income 250 400 100 2.200 150.00% -81.82% 160 40% Given Cak Cake Taxes (40%) Net income 880 1,320 -81.82% -81.82% 240 Given Common dividends Net Income after dividents 500 (260) 500 820 0.00% -131.71% Calc What comments would you make on each of the following bullet points? negative 20% change in sales negative 50% change in dep and amort positive 150% change in interest no change in common dividends positive 55.88% change in total current liabilities negative 71.74% change in EBIT negative 81.82% change in pre-tax income negative 131.71% change in NI after dividends Question 8. Quantitatively and qualitatively draft an argument supporting the following statement: "The Statement of Cash Flows and Free Cash Flow are not the same thing and, ceteris paribus, accountants are more interested in Statement of Cash Flows and investors are more interested in Free Cash Flow." Assume this statement is true. (This question is worth I point.) Questions 9: Use the income statement below for this question. (This question is worth 2 points.) Change Income Statement 10,000 12,500 -20.00% Ghen Sales Operating costs excluding deprecation Depreciation and amortition Earnings before interest and taxes 9,000 350 Given Ghen Calc 9,500 700 2.300 -5.26% -50.00% -71.74% 650 Given Calc Interest Pre-tax income 250 400 100 2.200 150.00% -81.82% 160 40% Given Cak Cake Taxes (40%) Net income 880 1,320 -81.82% -81.82% 240 Given Common dividends Net Income after dividents 500 (260) 500 820 0.00% -131.71% Calc What comments would you make on each of the following bullet points? negative 20% change in sales negative 50% change in dep and amort positive 150% change in interest no change in common dividends positive 55.88% change in total current liabilities negative 71.74% change in EBIT negative 81.82% change in pre-tax income negative 131.71% change in NI after dividends