U the annual alket price per share of common stock on a specific date l earnings per share is referred to as the price-earnings ratio. 13 company can use comparisons of its financial data to the data of other companies and industry values to evaluate its position. 14. Interpreting financial ratios should be considered in light of conditions peculiar to the industry in which the firm operates as well as general economic conditions. Inventory turnover shows how many times the average inventory was sold during the year. MULTIPLE CHOICE 1 which of the following is a noncash investing and financing activity? a. Payment of a cash dividend. b. Payment of a six-month note payable. c. Issuance of common stock to acquire land. d. Purchase of merchandise inventory on account. Cash paid to purchase long-term investments would be reported in the statement of cash flows in: a. The cash flows from operating activities section. b. The cash flows from investing activities section. c. The cash flows from financing activities section. d. A separate schedule. 2. Cash paid for preferred stock dividends should be shown on the statemer of cash flows under: a. Cash flows from investing activities. b. Cash flows from operating activities. C. d. Cash flows from financing activities c Noncash investing and financing activities Depreciation on factory equipment would be reported in the statement cash flows prepared by the indirect method in: a. The cash flows from operating activities section. b. The cash flows from investing activities section. e. A separate schedule. d. The cash flows from financing activities