Which of the following is correct about stocks?

Multiple Choice

• Stocks are issued to shareholders, those who own the company

• I do not know

• Stocks are categorized into four broad classes: common, preferred, split and options

• Stocks are only issued by publicly traded companies, those that are listed on the major exchanges

• Stocks are similar to cash; they are an asset for the company and should not be classified as equity

2.

Additional short-term borrowings	$	42,000
Purchase of short-term stock investments		10,700
Cash dividends paid	$	34,400
Interest paid		17,200

Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)