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

question 14

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 net income value using only the information in the Model, and not in the Data section?

• A) =B5-B17
• B) =B6-B15
• C) =B15-B16-B17+B18
• D) =B18-B11

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Definitions:

Firm's Exposure

The extent to which a company is susceptible to various risks, including market, operational, and financial risks, affecting its performance.

Financial Risk

The possibility of losing money on an investment or business venture, including the risk of not achieving expected financial returns.

Uncertain Prices

Refers to the variability and unpredictability in the prices of goods, services, or securities, which can be influenced by various factors including market demand, inflation, and economic policies.

Near Future

A term referring to a time period that is immediately ahead, typically in the context of events expected to happen soon.