The section of the balance sheet contains common stock, capital in excess of par, and retained earnings. financial statements help financial managers in the decision- making process. Which of the following statements is true of the statement of cash flows? it includes dividends paid it is the same as the income statement it measures changes in profit from one year to the next year it includes changes in net working capital only Question 15 6 pts A firm increases its debt ratio from 50% to 75%. Which of the following statements is most correct: earnings after interest expense but before taxes will increase the firm probably has very low borrowing! the stockholders' leverage has decreased the firm's positive ROE will increase