True or False?

16	Year-end #1: Sales 200 with Cash 100 = + long-term debt 100 + capital stock 100 + opening retained earnings 0 + net income 50 + accounts payable 100 accounts receivable 100 inventory 50 - fixed assets 100. Year-end #2: Sales 400 with Cash 100 = + long-term debt 200 + capital stock 100 + opening retained earnings 50 + net income 50 + accounts payable 200 accounts receivable 100 inventory 100 - fixed assets 300. The company pays dividends instead of investing cash in its business.
17	The situation in question 16 means the sales increase was not profitable because Cash remained the same in Year-end #2.
18	The situation in question 16 indicates the firms long-term debt to equity improved in the Year-end #2.
19	Year-end #1: Sales 200 with Cash 100 = + long-term debt 100 + capital stock 100 + opening retained earnings 0 + net income 50 + accounts payable 100 accounts receivable 100 inventory 50 - fixed assets 100. Year-end #2: Sales 400 with Cash 100 = + long-term debt 200 + capital stock 100 + opening retained earnings 50 + net income 50 + accounts payable 200 accounts receivable 100 inventory 100 - fixed assets 300. The company uses profits to fund fixed assets.
20	Maintaining a current ratio is a negative covenant.