Suppose that you are looking at the income statement of some company. You are looking at the following parts of the 2018 income statement (see the screen shot below): Net sales Cost of goods sold (Excluding depr.) Depreciation Question 3 [5 points] Other operating expenses Earnings before interest and taxes (EBIT) Less interest Pre-tax earnings Taxes (25%) Net Income Notes: a This company has no amortization charges. $ $ S Directions: This is a fill in the blank question. $ $ $ S $ 2018 5,500 4,300 290 560 68 492 123 369 The OTHER OPERATING EXPENSES of this company (shown in RED and with a ?), and given only the information provided here, are S Question 7 [5 points] Suppose you have the following scenario: During 2010, North American Trucking Co. billed its client for $30,000. On December 31, 2010, it had received $25,000, with the remaining $5,000 to be received in 2011. Total expenses during 2010 were $18,000 with $5,000 of these costs not yet paid at December 31. Given the information above, NET INCOME using ACCRUAL-BASIS ACCOUNTING is: (a) $25,000 (b) $13,000 (c) $12,000 (d) $10,000 (e) $5,000 Directions: This is a multiple choice question. Question 9 [5 points] Suppose that Ford Motor Co. paid dividends to its shareholders for a given fiscal period. These dividends which it issued to shareholders result in (a) An increase in net assets for Ford. (b) An increase in owner's equity for Ford. (c) An increase in retained earnings for Ford. (d) Both (a) and (c). (e) None of the above. Directions: This is a multiple choice question. Suppose you see the following Morningstar Style Box for a mutual fund that you are interested in investing in: Size Large Medium Small Question 11 [5 points] Investment Valuation Which of the following statements is MOST LIKELY TRUE regarding the composition of this mutual fund? (a) This mutual fund invests in stocks that have a relatively large market capitalization AND a relatively high book-to-market (B/M) ratio. (b) This mutual fund invests in stocks that have a relatively large market capitalization AND a relatively low book-to-market (B/M) ratio. (c) This mutual fund invests in stocks that have a relatively large market capitalization AND a relatively low price-to-earnings (P/E) ratio. (d) This mutual fund invests in stocks that have a relatively large market capitalization AND a relatively high price-to-earnings (P/E) ratio. (e) Both (B) and (D). Directions: This is a multiple choice