Answer:The statement of cash flows gives a summary of cash flows from operating,investing,and financing activities for a period of time.The statement of cash flows focuses attention on what is happening to the firm's cash position over time and it also avoids judgements about revene and expense recognition that go into the income statement.A benefit of the statement of cash flows is that it is not influenced by accrual accounting decisions. 3.What are the three types of benchmarks? Answer: Financial ratios ofother companies for the same period of time. Financial ratios of the company itself in previous time periods. Information extracted from financial markets such as asset prices or interest rates. 4.You invest in a stock that costs $215.50.It pays a cash dividend during the year of $12.20 and you expect its price to be $229 at year's end.What is the total shareholder return? Answer: Total Shareholder returns Ending Price of a Share-Beginning Price of Share Cash Dividend Beginning Price of Share =S229-S215.50+S12.20 S215.50 =11.93% 5.In 19X7,Slater Inc.had a net income of $30.3 million,assets of $560 million,and shareholders equity of $400 million.Calculate its return on equity. Answer: Return on equity Net Income Shareholders'Equity =S30.3 S400 =7.58% 6.You work at FaxMeSoon Corporation and are analyzing the results of 19x8 and are preparing pro forma statements for 19x9.The company anticipates an increase in total assets of $60 million,an increase in retained earnings of $30 million,and an increase in accounts payable of $45 million. Assume that other than the payables,the firm's liabilities include short term and long term debt,and that common stock and retained earnings make up the company's equity. a. Calculate the amount of external funding required in 19 x 9. b. Comment on the situation obtained in part a. 3-83-8 Answer: The statement of cash flows gives a summary of cash flows from operating, investing, and financing activities for a period of time. The statement of cash flows focuses attention on what is happening to the firm’s cash position over time and it also avoids judgements about revenue and expense recognition that go into the income statement. A benefit of the statement of cash flows is that it is not influenced by accrual accounting decisions. 3. What are the three types of benchmarks? Answer:  Financial ratios of other companies for the same period of time.  Financial ratios of the company itself in previous time periods.  Information extracted from financial markets such as asset prices or interest rates. 4. You invest in a stock that costs $215.50. It pays a cash dividend during the year of $12.20 and you expect its price to be $229 at year’s end. What is the total shareholder return? Answer: Total Shareholder returns = Ending Price of a Share – Beginning Price of Share + Cash Dividend Beginning Price of Share = $229 - $215.50 + $12.20 $215.50 = 11.93% 5. In 19X7, Slater Inc. had a net income of $30.3 million, assets of $560 million, and shareholders equity of $400 million. Calculate its return on equity. Answer: Return on equity = Net Income Shareholders’ Equity = $30.3 $400 = 7.58% 6. You work at FaxMeSoon Corporation and are analyzing the results of 19x8 and are preparing pro forma statements for 19x9. The company anticipates an increase in total assets of $60 million, an increase in retained earnings of $30 million, and an increase in accounts payable of $45 million. Assume that other than the payables, the firm’s liabilities include short term and long term debt, and that common stock and retained earnings make up the company’s equity. a. Calculate the amount of external funding required in 19 x 9. b. Comment on the situation obtained in part a