Question

With the following questions mark whether each is non-reasoning or reasoning. If "reasoning," then:

1. Circle indicator words and/or phrases

2. Mark off and number the statements

3. Paraphrase and list the statements

4. Identify the main conclusion

The World Bank has recently estimated the number of people in absolute poverty in the Third World at around 780 million. Half of them are in South Asia. The other half lives in East Asia, sub-Saharan Africa, Latin America, North Africa and the Middle East. Roughly 80 percent of these poor live in the countryside, mostly as small farmers and landless laborers. Poverty is thus an essentially rural phenomenon.

________ Non-reasoning ________ Reasoning

In the first place, we may start with the strong presumption that Colonel Openshaw had some very strong reason for leaving America. Men at his time of life do not change all their habits, and exchange willingly the charming climate of Florida for the lonely life of an English provincial town. His extreme love of solitude in England suggests the idea that he was in fear of someone or something, so we may assume as a working hypothesis that it was fear of something or someone which drove him from America.

Sherlock Holmes in "The Five Orange Pips" by Sir Arthur Conan Doyle

________ Non-reasoning ________ Reasoning

Answer 1

$140,000 is the addition to retained earnings.

 

Working:

Sales	1,250,000
less: cost of good sold	(500,000)
EBITDA	750,000
less: depreciation expense	(150,000)
EBIT	600,000
less: interest	(100,000)
EBT	500,000
less: tax @30%	(150,000)
net income	350,000
less: dividends (350,000*60%)	(210,000)
addition to retained earnings	140,000

$140,000 is the addition to retained earnings.