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Assume a company's Income Statement for Year 9 is as follows: Year 9 Income Statement Data (in 000s) Total Revenues Cost of Goods Sold Delivery
Assume a company's Income Statement for Year 9 is as follows: Year 9 Income Statement Data (in 000s) Total Revenues Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss) Other Income (Expense) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) $ 610,000 370,000 40,000 48,000 10,000 142,000 -2,000 -8,500 131,500 39,450 $ 92,050 Based on the above income statement data, the company's interest coverage ratio a operating profit margin are 19.29 and 15.1%. 15.47 and 23.3%. 16.71 and 23.3%. 10.83 and 15.1%. O 17.22 and 24.6%. Which one of the following actions is a reliable way for managers to try to increase the company's EPS? Cutting total annual compensation per PAT member by 10% to 20%; the resulting savings on labor costs per camera/drone sold will boost total profits and EPS Allocating a sizable portion of the company's internal cash flows each year to repurchasing shares of the company's common stock Increasing spending on product R&D for both cameras and drones by 20% or more each decision round: the resulting increases in a company's camera/drone PIQ ratings will boost both total profits and EPS Allocating a sizable portion of the company's net income each year to repurchasing some of the company's camera units O Allocating a sizable portion of the company's internal cash flows each year to issuing new shares of the company's common stock
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