Module 2: Part 1 - Income Statement and Change in Equity HW Question #7 XYZ Company, a 'for-profit' business, had revenues of $15 million in 2018. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.3 million. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. What was XYZ's net income for the year? Hint: Look at the PowerPoint, Homework Hint, especially as it relates to the 'Depreciation Tax Shield' examples. Choice: $900,000 Choice: $1,000,000 Choice: $1,470,000 Choice: $1,500,000 ha Question #8 XYZ Company, a 'for-profit' business, had revenues of $15 million in 2018. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.3 million. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. What was XYZ's total cash flow? Hint: Look at the PowerPoint, Homework Hint, especially as it relates to the Depreciation Tax Shield examples. Net Income + Depreciation Choice: $900,000 Choice: $2,400,000 Choice: $2,770,000 Choice: $4,500,000 Module 2: Part 1 - Income Statement and Change in Equity HW Question #9 See the explanation below to work the problem XYZ Company, a 'for-profit' business, had revenues of $15 million in 2018. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.3 million. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. What was XYZ's profit margin? Choice: 2.3% Choice: 5.7% Choice: 7.5% Choice: 9.8% Question #10 See the explanation below to work the problem, XYZ Company, a 'for-profit' business, had revenues of $15 million in 2018. Expenses other than VUA