Which of the following statements is true regarding cash flows from financing activities?

• When companies borrow, cash outflows for financing activities have occurred.

• When companies receive dividends, cash inflows from financing activities have occurred.

• When companies repurchase their own stock, cash outflows for financing activities have occurred.

A toy store with a calendar year-end is likely to have:

• unpredictable fluctuations in cash flow from quarter to quarter.

• the largest cash inflow from operations in the second and third quarters (April - September).

• a fairly stable cash flow across all four quarters.

• the largest cash inflow from operations in the fourth and first quarters (October - March).

Which of the following would be used to determine the ability of a company to pay dividends and interest on borrowings?

• the income statement.

• the statement of cash flows.

• the balance sheet.

• management discussion and Analysis.