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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

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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 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 and operating profit margin are 19.29 and 15.1% 15.47 and 23.3%. 16.71 and 23.3%. 10.83 and 15.1%. 17.22 and 24.6%. U 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 O 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 PQ 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 Allocating a sizable portion of the company's internal cash flows each year to issuing new shares of the company's common stock 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 and operating profit margin are 19.29 and 15.1%. 15.47 and 23.3%. 16.71 and 23.3%. A company's managers should almost always give serious consideration to making significant adjustments in its camera/drone strategies and competitive approaches when the number of camera and drone workstations the company has installed is NOT well above the industry-averages (as reported on pages 6 and 7 of the most recent Camera & Drone Journal). o the company has been unsuccessful in achieving industry-leading EPS, ROE, and stock price appreciation in the prior decision round and certainly if it has not finished in first place for the past two decision rounds. the company has been unsuccessful in achieving the investor-expected targets for EPS ROE, and stock price appreciation in the prior decision round and certainly if it has been unsuccessful for the past two decision rounds. its sales and market shares for cameras and drones are below the industry averages in as many as two geographic regions. the company's total production/assembly costs for both action cameras and UAV drones are above the industry averages (as reported on pages 6 and 7 of the latest issue of the Camera & Drone Journal)

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