QUESTION 9 Sales minus cost of goods sold equals Earnings per share. Operating profit. Pro forma profit. Gross profit QUESTION 10 Ellen knits cat sweaters and sells them online for $12 each. The variable costs associated with producing each cat sweater is $4.34. She has to earn enough each month to pay for the website and for other overhead costs, which total $5,257 per month. How many cat sweaters does she have to sell each month to have enough contribution margin to pay all of her fixed costs? Round you answer to the nearest whole number of cat sweaters. QUESTION 11 Sales in 2015 were $128,000 while sales in 2016 were $180,000. What is the percentage change in sales from 2015 to 2016? (enter your answer as a percent but leave off the percent sign. For example, if you calculated 12.34% then type in 12.34 as your answer. If it is a negative number, make sure that you put a negative sign in front of it, e.g.-12.34. Show your percent answer to two decimals) QUESTION 12 Which one of the following statements about the difference between fixed costs and variable costs is the most accurate? Fixed costs are know with certainty, while variable costs cannot be estimated. Variable costs are also referred to as overhead expenses. Variable costs are the same thing as fixed costs. Variable costs are those costs that vary directly with the volume of production while fixed costs or overhead expenses do not. QUESTION 5 Which one of the following items would normally appear on an income statement? Accounts receivable Cost of goods sold Treasury stock Current assets QUESTION 6 Which one of the following statements about footnotes to the income statement is most accurate? Under GAAP rules, each line of the income statement requires its own specific footnote, even if there is nothing material to report. O External income statements like those found in a 10-K report typically include many footnotes because the accountants are required to explain where the numbers were determined. Footnotes are allowed in internal income statements but are specifically excluded from the GAAP-based statements supplied to outside investors. Footnotes are generally used to cite specific GAAP rules, similar to footnoting an author in a term paper. QUESTION 7 The first line or 'top line' of an income statement is typically Operating expenses Operating income Revenue Gross profit QUESTION 8 Which one of the following is an example of a noncashexpense? O Cost of revenue Income tax expense Depreciation expense Salary expense QUESTIUN 1 Earnings per share, or EPS, is defined as The proportion of revenue left over after paying all operating expenses and income taxes. Net profit divided by the number of shares outstanding. Revenue divided by the number of shares outstanding. Gross profit divided by revenue. QUESTION 2 Amortization is the same basic idea as depreciation, but amortization is applied to Physical assets. Human capital. Intangible assets. Interest expenses. QUESTION 3 There are a number of different names for the income statement. Which one of the following terms IS NOTan acceptable alternative name for the income statement? Statement of earnings Profit & Loss statement Statement of Operations Retained earnings report QUESTION 4 The main difference between a pro forma income statement and an actual income statement is that The actual income statement covers a period of one year, while the pro forma income statement is limited to a single quarter. Pro forma income statements are based on GAAP while actual income statements are based on cash flow accounting. The pro forma income statement is based on projection while the actual is not. The pro forma income statement is reported in thousands of dollars while the actual income statement reports everything in actual dollars