1.Which of the following statements isMOST CORRECT?

Group of answer choices

A."Net Income" and "Cash Flow" are usually the same.

B.There is not necessarily any relationship between "Retained Earnings" and "Cash."

C.In managing a firm, NET INCOME is much more important than CASH FLOW.

D.If a firm has sufficient net income, sufficient cash flow is assured.

E.None of these statements is true.

2.Our firm has had the following results for the past three years:

• Last YearSales = $200,000 Net Income = $10,000
• Year BeforeSales = $150,000 Net Income = $9,000
• Two Years AgoSales = $100,000 Net Income = $7,000

The averageProfit Marginfor our firm's industry is 6 percent.What can we sayIS TRUEof our firm's profit marginTODAY?

Group of answer choices

A.Our firm's Profit Margin isBetterthan the industry, but it is gettingWorse.

B.Our firm's Profit Margin isBetterthan the industry, and it isimproving.

C.Our firm's Profit Margin isEQUAL TOthe industry, but it is gettingWorse.

D.Our firm's Profit Margin isEQUAL TOthe industry, but it is gettingBetter.

E.Our firm's Profit Margin isWorsethan the industry, but it is gettingBetter.

F.Our firm's Profit Margin isWorsethan the industry, and it is gettingworse.

G.None of these (above) is correct.