The following information were obtained from the books of Alhekma Corporation:

Net sales

$200,000

Cost of goods sold

150,000

Gross profit

$50,000

If cost of goods sold decreases by 10% and net sales revenue increase by 5%, net income would:

Select one:

a. cannot be determined from this information.

b.increase by 50%.

c.increase by 45%.

d.increase by 55%.

Maha Corporation has the following income statement (in millions):

Maha Corporation

Income Statement

For the Year Ended December 31, 2020

Net Sales

500

Cost of Goods Sold

300

Gross Profit

200

Operating Expenses

65

Net Income

$135

Using vertical analysis, what percentage is assigned to operating expenses?

Select one:

a.None of these answer choices are correct.

b.48%

c.27%

d.13%

Reem Corporation has 5,000 shares of 10%, $10 par cumulative preferred stock outstanding at December 31, 2020. No dividends have been paid on this stock for 2018 or 2019. Dividends in arrears at December 31, 2021 total:

Select one:

a.$10,000

b.cannot be determined from this information.

c.$5,000

d.$15,000