True or False?

1. When the net cash flows from operating, investing, and financing activities are combined to arrive at the overall net change in cash for the year, a net decrease in cash is subtracted from the beginning cash balance to calculate the ending cash balance.

2. The payment of salaries and wages would be reported as an operating activity on the statement of cash flows.

3. The receipt of dividends and interest are both reported as cash inflows from operating activities on the statement of cash flows

4. In general, the cash flow from operating activities is considered by many to be the most important component of the statement of cash flows.

5. Maya Company's purchase of 100 shares of Labrador Incorporated common stock would be reported as a financing activity on its statement of cash flows.

6. The receipt of dividends and interest are both reported as cash inflows from investing activities on the statement of cash flows.

7. The payment of interest on bonds is classified as a cash outflow from operating activities on the statement of cash flows.

8. Treasury stock purchased with cash are classified as cash outflows from financing activities on the statement of cash flows.