ACME, Inc. reported the following income statement for 2009: ...

[james]

ACME, Inc. reported the following income statement for 2009:
 
  Sales 2,500,000
  Variable Costs 900,000
  Fixed Operating Costs 700,000
  EBIT 900,000
  Interest Expense 200,000
  EBT 700,000
  Taxes (30) 210,000
  Net Income 490,000
  Earnings Per Share 4.90
  If ACME's sales next year increase by 20, what will ACME's earnings per share be?
  A) 7.58 B) 6.45 C) 5.76 D) 7.14

Question 2

Payable-through drafts look like checks but are not drawn on a bank.
 
  Indicate whether the statement is true or false

[TDubDCFL]

Answer to Question 1

D

Answer to Question 2

TRUE