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Pills R Us just bought an automated medicine dispensing machine that will fill prescriptions by robotically packaging the ordered medications. This robotic dispensing machine cost

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Pills R Us just bought an automated medicine dispensing machine that will fill prescriptions by robotically packaging the ordered medications. This robotic dispensing machine cost $8,000,000 and has a useful life of 10 years. It is expected to have no value at the end of that time. Pills R Us uses straight line depreciation. How much depreciation expense will Pills R Us book every year? i. Can not tell from the information given. ii. $100,000 ii. Nothing ($0.00) iv. $8,000,000 v. $800,000 Which category of financial ratios provides information on the percentage of their assets an organization owns outright. i Financing Structure (or capitalization) i. Operating iii. Profitability iv. Liquidity V. Asset Usage What is the difference between net income and operating income and what does each tell us. Oi. Net income is patient services revenues - operating expenses; Operating revenue is the difference between revenues from all sources and operating expenses. Both tell us how much of the money flowing into an organization it gets to keep. O ii. Net income is total revenues - total expenses; Operating income is operating revenues - operating expenses. Net income tell us how much of the money flowing into an organization it gets to keep. Operating income tells us how much of the revenues from performing our core business we get to keep and privides insight into how well we are controlling expenses. ii. Operating income = cash - current liabilities. Net income = total assets - total liabilities. Both tell us what the oprganization owns. iv. There is no difference. These are 2 terms for the same thing. During times of inflation, historical cost is always going to be replacement cost mi equal to il greater than ii. less than iv. having an unpredictable relationship to

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