Question 5 0.625 out of 0.625 points During 2016, QBE Inc. reported net income of $150,000 and had 100,000 shares of common stock and 1,000 shares of preferred stock outstanding for the entire year. QBE's 10%, $100 par value preferred shares are each convertible into 40 shares of common stock. If the tax rate is 40%, what is the diluted EPS for this company? Question 6 0.625 out of 0.625 points HBP Ltd. reported net income of $115,000 and had 200,000 shares of common stock and 5,000 shares of preferred stock outstanding for the entire year 2015. HBP's 8%, $150 par value preferred shares are each convertible into 40 shares of common stock. Note that market value of preferred shares are $110 per share. The company also distribute $30,000 as common dividends. The tax rate is 40%. What is the basic EPS for this company? Question 7 0.625 out of 0.625 points HiFi Corp. sells imported furniture on a retail basis. HiFi began operations during December 2016 and sold furniture of $250,000, of which $150,000 was on credit. The cost of furniture that was sold by HiFi was $200,000 and this was delivered by the supplier during December. However, the supplier has granted credit terms, according to which HiFi paid $20,000 in December 2016 and HiFi is obligated to pay remaining amount in January 2017. In addition to the purchase and sale of furniture in December, HiFi paid $10,000 in cash for salaries. In addition, HiFi incurred utility expense of $15,000 and advertisement cost of $25,000 in December, which will be paid in January, 2017. How much was HiFi's net profit for December 2016