The income statement: is a financial statement that shows the firm's financial position at a particular point in time. is a financial statement that summarizes a firm's revenues and expenses at a particular point in time. is a financial statement that summarizes a firm's revenues and expenses over a period of time. details the firm's assets and liabilities over a period of time. Which of the following equations describes net working capital? cash + inventory - accounts payables total assets - fixed assets - current liabilities fixed assets - long-term liabilities O total assets - total liabilities With respect to common stock claims: O it is similar to long-term debt in that the claim on the firm is fixed there must be cash available to pay a dividend as long as a firm has net income it can pay a dividend o the dividends paid are tax deductible to the firm Gross profit equals: Revenues - cost of goods sold Revenues - cost of goods sold - interest expense Revenues - cost of goods sold - depreciation expense Revenues - cost of goods sold - operating expenses - Given the following information, calculate earnings per share (round to the nearest cent). Earnings before depreciation and taxes $1,600,000 Depreciation expense $100,000 Tax rate 25% Common dividends paid $100,000 Number of shares of common stock outstanding 500,000 $1.39 $2.25 $1.79 $1.20