Which of the following about financial statements is true: Investors can only find a company's depreciation in Income Statement Investors can always find a company's depreciation in Income Statement Investors can always find a company's depreciation in Cash Flow Statement None of the other answers are correct How debt financing induces tax shield for the company? Taxes are reduced by the amount of the debt. Taxes are reduced by the amount of the interest payment. Taxable income is reduced by the amount of the interest payment. Taxable income is reduced by the amount of the debt. Which of the following statement about cash conversion cycle is NOT true? Firms prefer short cash conversion cycle Cash conversion cycle would affect a firm's return on assets (ROA) Cash conversion cycle would affect a firm's profit margin Firms with longer days payable outstanding would have shorter cash conversion cycle Question 4 1 pts Everything else equal, which of the following strategies most likely to increase the return to shareholders (ROE)? Increase days sales outstanding Maintain a large cash balance Reduce leverage when core business is strong Increase days payable outstanding