14) Which one of the following statements concerning accounting reports is correct A) The income statement reflects the position of a firm as of a single point in time B) The total equity of a firm is equal to the total assets plus the total abilities C) The statement of cash flows identifies both the sources and the use of cash. D) The income statement reflects the amount of cash available for investment and financing activities 15) The value of a stock is a function of A) future returns B) historic dividend growth rate C) most recent earnings per share. D) past returns 16) Which of the following contributes to high P/E ratios? A) high dividend payout ratios B) high rate of earnings growth C) periods of high inflation D) high debt ratios 17) The current annual sales of Flower Bud, Inc. are $178,000. Sales are expected to increase by 4% next year. The company has a net profit margin of 5% which is expected to remain constant for the next couple of years. There are 10,000 shares of common stock outstanding. The market multiple is 16.4 and the relative P/E of the firm is 1.21. What is the expected market price per share of common stock for next year? A) $15.18 B) $17.66 C) $18.37 D) $19.29 18) Global Warning's EPS for the current year is $2.75 and its current P/E ratio is 50. You have forecasted that EPS will grow by 10% but the P/E ratio will fall to 40. What do you expect the price of a share of GW's stock to be at the end of next year? A) $110 B) $121 C) $137.50 D) $151.25 19) William is the type of stock market investor who focuses on factors such as a company's book value, debt load, return on equity, and cash flow. In searching for stock investments, he looks at a company's historical performance and attempts to find undervalued stocks. This information indicates that Sam is the type of investor known as A) a growth investor. B) a premium investor. C) an earnings investor. D) a value investor