Which of the following is/are tax-deductible expense(s) for a corporation? a. Dividends paid on the corporation's stock b. Interest paid on the corporation's bonds O c. Both interest and dividends paid O d. Neither interest nor dividends paid QUESTION 10 Which of the following must be true in order for the Balance Sheet to properly balance? O a. Equity Assets / Liabilities O b. Assets = Equity * Liabilities O c. Liabilities = Assets + Equity O d. Equity = Assets + Liabilities O e. Assets = Liabilities + Equity QUESTION 11 Lamberton Industries is forecasting the following income statement: $15,500,000 Sales Operating costs excluding depreciation EBITDA Depreciation EBIT Interest EBT Taxes (45%) Net income 5.425,000 $ 10,075,000 2.500.000 $7,575,000 2.000.000 $5,575,000 2.508.750 $ 3,066 250 The CEO would like to see higher sales and a forecasted net income of $6,500,000. Assume that operating costs (excluding depreciation) are 35% of sales and that depreciation and interest expenses will increase by 5%. The tax rate will remain at 45%. What level of sales would generate $6,500,000 in net income? a. $19.158,750 b.$31,398,601 CS18.933.750 d. S25,451,049 e $23,168,845 QUESTION 12 Suppose Congress changes the tax laws so that a firm's depreciation expense doubles. (The firm's percentage tax rate does not change, however.) Assuming there are no changes in sales, other operating costs, or interest charges, the firm's net income will and its cash flow will a. decrease ... decrease O b. increase ... increase Oc decrease ... increase d. increase... decrease