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True or False. 1a. If EBIT = $10,000, depreciation = $5000 and taxes = $2000, operating cash flow < $10,000. 1b. If the increase in
True or False.
1a. If EBIT = $10,000, depreciation = $5000 and taxes = $2000, operating cash flow < $10,000.
1b. If the increase in common stock = $2000 and cash flow to owners = $9000, dividends < $10,000.
1c. The payment of both interest and dividends is not a source of funds.
1d. Other things equal, the greater the dividends, the lower the cash flow to owners will be.
13. Other things equal, the greater the increase in long-term debt, the lower the cash flow to creditors will be.
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