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QUESTION 7 Cherry Inc. has the following summary financial information for the year-ended December 31, 20X2 Sales 550.000 Net Income 25 1.000 Average number of common shares outstanding 500 shares If Cherry Inc. had issued 500 additional common shares on January 1, 20X2 how would this impact their earings per share (EPS)? EPS would increase from $0.50 to $100 EPS would decrease from $200 to $1.00 DEPS would increase from $2.00 to $4.00 EPS would decrease from $2.00 to $0.50 QUESTIONS Able Company has earnings per share of $1.00 and Baker Company has earnings per share of $2.00. What can you determine from this information? Able is more profitable than Baker Baker is 2 times more profitable than Able Baker is 3 times more profitable than Able Cannot determine profitability from this information QUESTION 9 Cash dividends paid to common shareholders would be classified on the Cash Flow Statement as an Investing activity not be reported on the Cash Flow Statement be classified on the Cash Flow Statement as an Operating Activity be classified on the Cash Fl Statement as an Financing activity