(Author's note: Select an appropriate annual report and distribute financial statements to students, and use or adapt the following questions.) These questions relate to the accompanying Consolidated Statements of Income and Consolidated Statements of Cash Flows. 1. Study the income statement, and note the captions that are used. Contrast the format of this statement with that used by Campbell Soup Company. What are the captions of the intermediate profit amounts reported by this company that are not reported by Campbells? 2. Assume that cost of goods sold for this company is the sum of the material, labor and other production costs, plus 80% of the depreciation and amortization expense. Calculate the gross profit ratio for this firm for each of the past three years. (Hint: Other income should be excluded from gross profit.) 3. Assuming that this firm has experienced increases in its production costs (e.g., increases in raw material and labor costs) during each of the past three years, explain how it has managed to maintain a relatively constant gross profit ratio. 4. Assume that this firm is developing a new version of its product, and that cost analysts have estimated that the new version will cost $0.64 to make. What selling price will be set for this item if management desires to have the same gross profit ratio on the new item as on items presently being made and sold? 5. Assume that the interest rate incurred by this firm on the money it has borrowed by issuing notes and bonds payable averaged 12% for the year ended Month xx, 20xx. Calculate the average amount of debt outstanding during the year ended Month xx, 20xx. Calculate the firm's effective income tax rate for the year ended Month xx, 20xx. 6. Calculate the average number of shares of common stock outstanding during each of the past three fiscal years. 7. Calculate the dividend per share, based on the average number of shares outstanding calculated in your answer to question 6. 8. Draw a T account for the Accounts Receivable account. Assume that the balance of accounts receivable at the end of fiscal 20xx, was $xxx,000. Using the appropriate data from the income statement and statement of cash flows, calculate the amount of the credit transaction (i.e., the principal decrease to accounts receivable). What does this decrease represent?