What is an argument for treating purchases of treasury stock

Assignment Help Financial Accounting

Reference no: EM13914168

1. Which statement is more useful-the income statement or the statement of cash flows?

2. If a company has positive earnings, can cash flows from operating activities ever be negative?

3. Which adjustments to net income in the operating activities section of the statement of cash flows are directly related to cash flows in other sections?

4. How would you respond to someone who says that the most important item on the statement of cash flows is the change in the cash balance for the year?

5. Business application- If a company's cash flow yield is less than 1.0, would its cash flows to sales and cash flows to assets be greater or less than profit margin and return on assets, respectively?

6. Business application- In computing free cash flow, what is an argument for treating the purchases of treasury stock like dividend payments?

Reference no: EM13914168

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