Answer the following questions with brief explanation and answer, make sure to answer every part of the question.

Earnings per Share is calculated by taking the net income divided by:

A. The ending number of common shares outstanding

B. The beginning number of preferred shares outstanding.

C. The average number of common shares outstanding.

D. The average number of common shares issued.

On the statement of cash flows, an increase in inventory results in:

A. An increase in cash.

B. A decrease in cash.

C. An increase in financing activities

D. A decrease in investing activities.

On the statement of cash flows, a decrease in accounts payable results in:

A. An increase in cash.

B. A decrease in cash.

C. An increase in financing activities.

D. A decrease in investing activities.

. Use the information from the data provided below to prepare a full Income Statement in proper format for the year ended December 31, 2017.

Research and development expenses $5,000

Insurance expense $7,000

Net sales $186,000

General, selling, and administrative expenses $29,000

Cost of goods sold $87,000

Income tax expense $11,000

Rent expense $12,000

Interest income $3,000

Interest expense $4,000

. Indicate

1) what effect the below changes in balance sheet accounts over the course of the last fiscal year would have on cash (increase or decrease),?

and 2) in which section of the cash flow statement they would appear in (operating, investing, or financing):

a) Decrease in accounts payable of $100

b) decrease in accounts receivable of $200

c) increase in inventory of $300

d) decrease in wages payable of $400

e) purchase of land for $500

f) proceeds from sale of equipment for $600

g) payment of LT bonds payable for $500

h) proceeds from issuance of common stock of $400

i) payment of dividends declared of $300

j) proceeds from issuance of LT notes payable $200

Calculate ending retained earnings as of 12/31/19 from the below information from 2019. Not all amounts will be used.

Accounts receivable $850,000

Depreciation expense $2,225,000

Dividends declared and paid $2,500,000

Net income $4,250,000

Treasury stock $375,000

Beg. Retained earnings 12/31/18 $7,520,500

Accumulated depreciation $1,375,000