Problem 1. A company acquired a computer for 20,000 and paid for it in full by issuing 1,000 shares of its own common stock, par $10 (current market value $20 share). This transaction should not be reported on the statement of cash flows since no cash was paid out nor received.
True or False
Problem 2. A growing difference between net income and cash flow form operations can be a sign of management manipulations of the company's earning?
True or False