Select the most correct answer: 1. At the beginning of the year, XYZ issued employee stock options for 400,000 shares. Options on 200,000 shares have an excrcise price of $18, and options on the other 200,000 shares have an exercise price of $22. The average stock price over the year was $20. The change in the number of shares used to calculate diluted earnings per share for the year due to these options is closest to: A. 20,000 shares. B. 67,000 shares. C. 100,000 shares. D. $400,000 shares. 2. Which of the following is considered a non-operating transaction from the perspective of a manufacturing firm? A. Dividends received from available-for-sale securities. B. Interest expense on issued bonds. C. Accruing bad debt expense for goods sold on credit. D. A \&B. 3. (LB) corporation reported the following financial data for year-end 31 December: (Common shares outstanding, 1 January 2,020,000); (Common shares issued as stock dividend, 1 June 380,000); (Net income; $3,350,000); (Preferred stock dividends paid $430,000 ); (Common stock dividends paid $240,000 ). Which statement about the calculation of LB's EPS is most accurate? A. LB's basic EPS is $1.22. B. LB's basic EPS is $1.0. C. The weighted average number of shares outstanding is 2,210,000. D. The weighted average number of shares outstanding is 2,020,000. 4. Which of the following statements best describes other comprehensive income? A. Income earned from diverse geographic and segment activities. B. Income that increases stockholders' equity but is not reflected as part of net income. C. Income earned from activities that are not part of the company's ordinary business activities. D. None of the above. 5. If you have the following information for 2022 : sales of $800, the cost and retail price of the available inventory during 2022 is $500 and $900 respectively. The cost of the ending inventory under the retail method approximately is: A. $400. B. $100. C. $56. D. $150. 6. Assume Firm A has a higher current ratio but a lower quick ratio as compared to Firm B. This is the result of A. higher inventory as compared to Firm B. B. lower inventory as compared to Firm B. C. equal inventory as compared to Firm B. D. higher account receivables as compared to Firm B. 7. During all 2022, XYZ company had 1,000,000 average shares outstanding. XYZ also had 10,000 options outstanding with exercise prices of $15 each. The average stock price of XYZ during 2022 was $10. For purposes of computing diluted earnings per share, how many shares would be used in the denominator? A. 1,003,333. B. 1,006,667. C. 1,010,000. B. 1,000,000. 3. For the year ended 31, December 2022, sella Corporation reported net income of $200 million and a weighted average of 50,000,000 common shares outstanding. There are 2,000,000 convertible preferred shares outstanding MODEL 1