Question 1 15 pts Which of the following statements concerning net income is MOST correct? Net income represents income that may be reinvested in the humor distributed to shareholders in form of dividend. Net income represents sales minus operating expenses at a specific point in time. Net income represents cash available to pay dividends. Negative net income reduces a company's cash balance. Depreciation expense increases net fixed assets as shown on the balance sheet. reduces both taxes and net income. decreases current assets, net income, and operating cash flows. is a noncash item that increases net income. Question 4 15 pts A company sells used equipment with a book value of $1,000,000 for $800,000 cash. How would this transaction affect the company's balance sheet? Cash rises $800,000; net plant and equipment falls $200,000; equity falls $600.000, Cash rises $800,000, net plant and equipment falls $1,000,000, equity falls $200,000. Cash rises $1,000,000; net plant and equipment falls $800,000; equity rises $200,000. Net plant and equipment rises $200,000; equity rises $200,000 A 1 Question 5 15 pts Given the following information, answer questions 5 and 6: Currently, Initech Inc. has a market value of $80 million with 4 million shares outstanding. Its shareholder equity (-book value) is $100 million. 5. Which one of the following is true: Initech Inc. has a book value per share of $40. Initech Inc has a market price per share of $30. Initech Inc's book value per share is greater than its market price per share. Initech Inc. has a M/B Ratio of 1.50