Use a Modern Software Tool to Perform Statistical Calculations -Which of the Following Formulas Would Be Used to Calculate

question 58

Multiple Choice

Use a modern software tool to perform statistical calculations. Using the spreadsheet below to answer the following question(s) .
The spreadsheet below shows the net income model for a company that sells shoes. $\begin{array}{|l|l|l|} \hline& \text { A } & \text { B } \\\hline 1 & \text { Net Income Model } & \\\hline 2 & & \\\hline 3 & \text { Data } & \\\hline 4 & & \\\hline 5 & \text { Sales } & \$ 10,000,000 \\\hline 6 & \text { Cost of Goods Sold } & \$ 6,400,000 \\\hline 7 & \text { Administrative Expenses } & \$ 500,000 \\\hline 8 & \text { SellingExpenses } & \$ 900,000 \\\hline 9 & \text { Depreciation Expenses } & \$ 750,000 \\\hline 10 & \text { Interest Expenses } & \$ 70,000 \\\hline 11 & \text { Taxes } & \$ 620,000 \\\hline 12 & & \\\hline 13 & \text { Model } & \\\hline 14 & & \\\hline 15 & \text { Gross Profit } & \$ 3,600,000 \\\hline 16 & \text { Operating Expenses } & \$ 2,150,000 \\\hline 17 & \text { Net Operating Income } & \$ 1,450,000 \\\hline 18 & \text { Eamings Before Taxes } & \$ 1,380,000 \\\hline 19 & & \\\hline 20 & \text { Net Income } & \\\hline\end{array}$
-Which of the following formulas would be used to calculate the operating expenses?

• A) =SUM(B7:B10)
• B) =SUM(B7:B9)
• C) =SUM(B7:B9)-B6
• D) =SUM(B7:10)-B11

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Definitions:

Rational Expectations School

An economic theory suggesting individuals make predictions about future economic events using all available information and past experiences.

Inflation

The speed at which the general cost level for goods and services ascends, weakening purchase potency.

Policy Change

Adjustments or modifications made to existing rules, regulations, or guidelines within an organization, government, or system.

Monetary Policy

Actions by a central bank to control the money supply and interest rates in order to influence economic activity.