Which of the following statements regarding corporations is false? Corporations are not taxed; their owners are taxed Their owners enjoy limited liability Corporations have transferable ownership rights Corporations are assumed to have continuous life Corporations have a separate legal existence from their owners If a company has Retained Earnings of $2,000,000 before closing entries and had a net loss of $50,000, cash dividends of $20,000 and stock dividends of $30,000, how much is Retained Earnings after closing entries? $2,050,000 $1,930,000 $2,000,000 $1,900,000 $1,920,000 If a company had Net Cash Provided by Operating Activities of $100,000, Cash Dividends of $10,000, Stock Dividends of $5000 and Capital Expenditures of $20,000, what is the company's Free Cash Flow? $70,000 $100.000 $85,000 $80,000 $65,000 A company's Prepaid Expenses increased $1000. For the Cash Flow Statement Subtract from Investing Activities Add to Operating Activities Subtract from Financing Activities Add to Investing Activities Subtract from Operating Activities What is the disadvantage for a company of issuing stock instead of issuing bonds to finance the acquisition of new assets? current stockholders have their ownership percentage diluted and earnings per share is reduced interest expense is increased there is a reduction to net income there is no disadvantage to issuing stock instead of bonds the firms debt ratio increases A company sold a plant asset for $5000. Its cost was $30,000 and had an accumulated depreciation balance of $25,000. For the Cash Flow Statement Add $5000 in Investing Activities Subtract $5000 in Financing Activities Add $5000 in Operating Activities Subtract $5000 in Investing Activities Subtract $5000 in Operating Activities