3. Which of the following is NOT an issue that prevents reliance on the statement of cash flows in calculating free cash flows? a. The Statement of Cash Flows may be manipulated because GAAP allows managers discretion on when to record cash transactions b. On Statement of Cash Flows, Allocation of taxes between operating and financial activities is ignored c. Significant non-cash transactions are omitted which may be part operational and part financial (for example purchasing an asset with a loan) d. On Statement of Cash Flows, Interest expense is left in operating section e. On the statement of Cash Flows, the operating section is not purely related to operating activities

Which of the following is not a use of the statement of cash flows? a.Helps creditors analyze the company's operations. b.Provides information about the sources of cash flows. c.Measures how efficiently the company's cash resources are being used. d.Provides insights into the quality and reliability of reported income.

Which of the following is not a source of funds for immediate liquidity purposes? a. Proceeds from an IPO. b. Sale of liquid assets such as T-bills. c. Funds borrowed on the money market. d. Excess cash above regulatory reserve requirements

State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Use the minus sign to indicate amounts that are cash out flows, cash payments, decreases in cash, or any negative adjustments. If your answer is not reported in an amount box does not require an entry, leave it blank or enter "0". a. Received $120,000 from the sale of land costing $70,000. Investing activities  $fill in the blank 2     Operating activities  $fill in the blank 4 b. Purchased investments for $75,000. Investing activities  $fill in the blank 6 c. Declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year. Financing activities  $fill in the blank 8 d. Acquired equipment for…