Which of the following statements is true? Companies over the short run should generate enough cash flow from operations to cover investing and financing activities of the firm. Cash used for dividends should be generated by borrowing rather than by generating cash from operations. O Cash flow adequacy ratios are generally defined similarly by analysts. O Borrowing each year to pay dividends and repay debt is a questionable cycle for a company to be in over the long run. QUESTION 9 Use the following selected financial data to calculate the operating profit margin for LKJ Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271. Net sales $800,000 Cost of goods sold 500,000 Operating expenses 100,000 Net income 120,000 Total assets 640,000 Total liabilities 462,000 O 15.0% O 22.29% O 37.5% O 25.0% QUESTION 10 Use the following selected financial data to calculate the return on equity for UTS Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271. Net sales$700,000 Cost of goods sold 550,000 Operating expenses 80,000 Net income 30,000 Total assets 460,000 Total liabilities 310,000 O 20.09% O 21.4% 06.59% 4.3%