1. On the Statement of Cash Flows payments to purchase bonds and stocks of other

1. On the Statement of Cash Flows payments to purchase bonds and stocks of other companies are reported in theoperating activities section.investing activities section.financing activities section.schedule of noncash investing and financing activities2. On the Statement of Cash Flows payments to lenders for interest are reported in theoperating activities section.investing activities section.financing activities section.schedule of noncash investing and financing activities3. When doing a horizontal analysis of Net Income for 2003 2004 2005 2006 and 2007 the 2006 Net Income dollar amount is divided by the2007 Net Income dollar amount.2006 Net Income dollar amount.2003 Net Income dollar amount.an average dollar amount calculated using all five years4. A decrease in stockholders equity as a result of operating a business isinvestment.revenue.expense.dividends.Investors are