1.Diamond Company reported the following on its income statement: Income before income taxes $540,000 Income tax expense 200,000 Net income $340,000 An analysis of the income statement revealed that interest expense was $60,000. Diamond Company's times interest earned was a. 6 times. b. 9 times. c. 8 times. d. 10 times. 2 Use the following financial statement information as of the end of each year 2022 2021 Inventory $54,000 $38,000 Current assets 81,000 106,000 Total assets 382,000 326,000 Current liabilities 27,000 36,000 Total liabilities 102,000 88,000 Net sales 784,000 697,000 Cost of goods sold 306,000 277,000 Net income 134,000 90,000 Income tax expense 35,000 28,000 Interest expense 27,000 24,900 Compute the days in inventory for 2022. 3.Galeb Company has a heavy-duty production machine with a cost of $289,000 and accumulated depreciation of $262,000 that is sold for $19,000. What is the amount of the gain or loss on disposal of the machine? 4.Let's assume a big tank was purchased on January 1, 2021, for $220,000. The tank was expected to last for five years and at the end of its useful lifetime to have a salvage value of $40,000. What is the net book value (NBV) on December 31, 2022, if the double-declining balance method is used? 5.Crystal Clear Corporation reported net sales of $650,000, $720,000, and $702,000 in the years 2020, 2021, and 2022, respectively. If 2020 is the base year, what is the percentage increase in sales from 2020 to 2022? a. 108% b. 120% c. 8% d. 20% 6.Lucky Clove Inc. is planning to purchase a special machine capable to do certain operations that are not performed manually. This machine will cost $130,000 and it will last for four years. Use of the machine will reduce labour cost by $55,000 in year 1, $52,000 in year 2, $51,000 in year 3, and $41,000 in year 4. Discount rate for this investment project is 17 percent. Should the machine be purchased? Use the net present value (NPV) method in your calculation