what does this indicate about hornet rsquo s dividend paying ability 642798

1. Depreciation is often considered a major source of funds. Do you agree? Explain.

2. Pickerton started the year with $50,000 in accounts receivable. The firm ended the year with $20,000 in accounts receivable. How did this decrease influence cash from operations?

3. Aerco Company acquired equipment in exchange for $50,000 in common stock. Should this transaction be on the statement of cash flows?

4. Operating cash flow per share is a better indicator of profitability than is earnings per share. Do you agree? Explain.

5. Hornet Company had operating cash flow of $60,000 during a year in which it paid dividends of $11,000. What does this indicate about Hornet’s dividend paying ability?