Shown Below Are Selected Data from the Financial Statements of Noble

question 70

Multiple Choice

Shown below are selected data from the financial statements of Noble Computers. (Dollar amounts are in millions, except for the per share data.)
$$\begin{array} { | c | r | } \hline \text { Income statement data: } & \\\hline \text { Sales } & \$ 3,500 \\\hline \text { Cost of goods sold } & 1,890 \\\hline \text { Operating expenses } & 675 \\\hline \text { Profit } & \$ 115 \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \$ 540 \\\hline \text { Average total assets } & \$ 4,400 \\\hline\end{array}$$
Per share data (these amounts stated in actual dollars, not millions) :
Noble reported earnings per share for the year of $6 and paid cash dividends of $2.00 per share. At year end, the Wall Street Journal listed Noble's shares as trading at $81 per share.
-Refer to the above data. Noble's operating profit was:

• A) $1,610.
• B) $675
• C) $935.
• D) Some other amount.

Identify and explain common sources of bias in surveys and studies.

Recognize factors important in designing questionnaires to minimize errors.

Understand the concept of sampling and various sampling techniques.

Comprehend the impact of sample size on the accuracy of sample estimates.

---

Definitions:

Flotation Cost

The total costs incurred by a company in issuing new securities, including underwriting, legal, registration, and other expenses.

Cost of Capital

The rate of return a company must pay to its shareholders and debt holders, representing the cost of obtaining funds to finance its operations.

Long-Term Funds

Investments or sources of financing that are provided or required for a duration exceeding one year.

Acquisition of Assets

The process by which a company purchases or obtains assets, such as property, equipment, or other resources, to enhance its business operations.