1. If a company has sales of $3.5 million and expenses consist of cost of good sold of $1 million, administrative expenses of $200,000, marketing expenses of $150,000, depreciation of $400,000, interest of $250,000, and dividends of $125,000, address the following questions for the year:
Assuming a tax rate of 30% and shares of stock outstanding of
1 million.....
What is net income?
What is earnings per share?
What is the operating cash flow?
2. Are financial managers the primary and perhaps the only "boundary setters"? Does this create potential corporate issues?