Which one of the following statements is correct concerning a corporation with taxable income of $125,000?

Which one of the following statements is correct concerning a corporation with taxable income of $125,000?    A.  Net income minus dividends paid will equal the ending retained earnings for the year. B.  An increase in depreciation will increase the operating cash flow. C.  Net income divided by the number of shares outstanding will equal the dividends per share. D.  Interest paid will be included in both net income and operating cash flow. E.  An increase in the tax rate will increase both net income and operating cash flow. Refer to sections 2.2 and 2.4

38.

Which one of the following will increase the cash flow from assets, all else equal?    A.  decrease in cash flow to stockholders B.  decrease in operating cash flow C.  increase in the change in net working capital D.  decrease in cash flow to creditors E.  decrease in net capital spending Refer to section 2.4

39.	For a tax-paying firm, an increase in _____ will cause the cash flow from assets to increase.    A.  depreciation B.  net capital spending C.  change in net working capital D.  taxes E.  production costs Refer to section 2.4

40.

Which one of the following must be true if a firm had a negative cash flow from assets?    A.  The firm borrowed money. B.  The firm acquired new fixed assets. C.  The firm had a net loss for the period. D.  The firm utilized outside funding. E.  Newly issued shares of stock were sold. Refer to section 2.4