Here is selected financial statement data regarding a company's balance sheet. assets: dec. 31, 2018 dec. 31, 2017 cash $ 39,000 $ 36,000 accounts receivable 87,000 73,000 inventory 319,000 252,000 prepaid insurance 23,000 24,000 supplies 93,000 97,000 in the statement of cash flows, the operating activities section should show an adjustment to net income to cash flows from operating activities as follows: in supplies $

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.