Q11:

Blanco, Inc. has the following income statement (in millions):

BLANCO, INC.

Income Statement

For the Year Ended December 31, 2010

Net Sales $200

Cost of Goods Sold 120

Gross Profit 80

Operating Expenses 44

Net Income $ 36

Using vertical analysis, what percentage is assigned to operating expenses?

Select one:

a.

22%

b.

18%

c.

55%

d.

70%

Q12:

the depreciation expense is shown in the statement of cash flows as

a.

inflow in the investing activities

b.

inflow in the operating activities

c.

outflow in the investing activities

d.

outflow in the operating activities