16. In corporate finance, what does the agency problem refer to The problem that results from potential conflicts of interest between the manager of a. a business and the stockholders b. The problem associated with financial managers and Internal Revenue agents c. The conflict that exists between stockbrokers and investors d. The conflict that exists between the board of directors and the employees of the firm e. None of the above What is sales revenue, minus cost of goods sold and operating expenses, known as for income statement purposes? a. Retained earnings b. Net income available to preferred shareholders C. EBIT d. Net profit 18. Your firm has the following balance sheet statement items: total current liabilities of $805,000; total assets of $2,655,000; fixed and other assets of $1,770,000; and long- term debt of $200,000. What is the amount of the firm's net working capital? a. $770,000 b. $80,000 . $25,000 d. $325,000 Calculate the EBIT for a firm with $4 million total revenues, $3.5 million cost of goods sold, $500,000 depreciation expense, and $120,000 interest expense. 19. A) $500,000 B) $380,000 C) so D) ($120,000)