Sprint 6:50 PM bbhosted.cuny.edu D) earnings per share. 9. Investors choose to invest in higher risk investments because these investments offer higher A) expected returns. B) inflation. C) actual returns. D) future consumption. 10. The market for short-term debt is known as A) the bond market. B) the notes market. C) the capital market. D) the money market. 11. Working capital management refers to A) long-term financing decisions B) the management of cash flows. C) investing in product development. D) capital structure. 12. Your firm has the following income statement items: sales of 50,250,000; income tax of $1,744,000; operating expenses of 10,115,000; cost of goods sold of S35,025,000; and interest expense of $750,000. What is the amount of the firm's gross profit? A) S18,000,000 B) S15,225,000 C) S5,000,110 D) $6,632,000 13. Which of the following is NOT included in computing EBT (earnings before taxes)? A) Marketing expenses B) Depreciation expense C) Cost of goods sold D) Dividends 14. On the income statement, sales revenue, minus cost of goods sold and operating expenses, equals A) Net profit. B) Retained earnings C) Net income available to preferred shareholders. D) Net operating income (EBIT). 15. Which of the following streams of income is not affected by how a firm is financed (whether with debt or equity)? A) Net profit after tax but before dividends B) Net working capital C) Operating income