Enabled: Exam $1($Chapters $1-3)$

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Barnyard, Incorporated's $2018$ income statement lists the following income and expenses: EBIT $=$$$500,000,$ interest expense $=$$$45,000,$ and taxes $=$$$152,000.$ Barnyard's has no preferred stock outstanding and $200,000$ shares of common stock outstanding. What are its $2018$ earnings per share?

Multiple Choice $$

$$1\mathrm{.}515$

$$1\mathrm{.}74$

$$2.275$

$$2\mathrm{.}50$

Which of the following statements is correct?

Multiple Choice

$01$

If a firm has accounting profit, its cash account will always increase.

The reason the statement of cash flows is important is because cash is what pays the firm's obligations, not accounting profit. $$

The bottom line on the statement of cash flows equals the change in the retained earnings on the balance sheet. $$

All of these choices are correct.