(8 Points) 1. Fill in the table below. What does the common size income statement analysis
tell you about LMN, Inc?
Common Size Income Statement Analysis for LMN, Inc.
Income Statement
2019
%
Net Sales
$1,110,000
Cost of Goods Sold
650,000
Gross Profit Margin
$460,000
Selling & Administrative Expenses 265,000
Depreciation
$110,000
Operating Profit (EBIT)
$85,000
Interest
$40,000
Earnings Before Taxes
$45,000
Taxes (.40)
$18,000
Net Income
$27,000
(4 Points)
2. Provide two examples of sources of cash flow for the firm and two examples of
uses of cash flow.

Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Amethod of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the a. last-in, first-out method. b. first-in, first-out method. c. specific identification method. d. average cost method.