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Which is not an appropriate use of the cash flow statement

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Reference no: EM132960753

Problem 1: Which of the following transactions is not a financing activity of ABC Company?

a. Purchased 500 shares of stock of XYZ Corporation.

b. Sold 1,000 shares of treasury stock.

c. Borrowed $50,000 from First American Bank.

d. Paid dividends of $8,000.

Problem 2: Which of the following is not an appropriate use of the cash flow statement?

a. Predict ability to pay debts.

b. Evaluate managers' decisions.

c. Analyze profitability and liquidity.

d. Predict future cash flows.

Reference no: EM132960753

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