Elgin Battery Manufacturers had sales of $1,000,000 in 2009 and their cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 10 percent of sales. Depreciation expense was $100,000 and interest expense for the year was $10,000. The firm's tax rate is 30 percent. What is the dollar amount of taxes paid?

Select one:

a. $117,800.

b. $300,000.

c. $36,000.

d. $27,000.

Farah Snack Co. has earnings after taxes of $150,000, preferred dividends paid were $20,000. Taxes were $22,500. The firm has 100,000 shares of common stock outstanding. Earnings per share on the common stock was:

Select one:

a. $1.30.

b. $.75.

c. $.80.

d. $1.10.

Financial ratio analysis can be useful for

Select one:

a. comparison of rations within a single industry.

b. historical trend analysis within a firm.

c. measuring the effects of financing.

d. All of the options.