Which of the following distributions is used in hypothesis testing to investigate the presence of heteroscedasticity?

Using vertical common-size analysis of the income statement of Tab for 2005, the cost of sales relative to the benchmark is closest to:

Tab, Inc., Income Statements for Fiscal Years 2003, 2004, and 2005 Amount (in millions of dollars) 2005 2004 2003 Revenues $25,000 $22,000 $21,000 Cost of sales 20,000 18,000 17,000 Gross profit $5,000 $4,000 $4,000 Selling, general, and administrative expenses 500 500 800 Operating income $4,500 $3,500 $3,200 Interest and other nonoperating expense 200 250 250 Earnings before income taxes $4,300 $3,250 $2,950 Income tax 1,410 975 885 Net income $2,890 $2,275 $2,065 Tab, Inc., Balance Sheets as of End of Fiscal Years 2003, 2004, and 2005 Amount (in millions of dollars) 2005 2004 2003 Cash, cash equiv., and marketable securities $200 $150 $100 Accounts receivable 1,800 1,350 900 Inventories 8,000 7,500 7,000 Total current assets $10,000 $9,000 $8,000 Net property, plant, and equipment $20,000 19,000 19,000 Intangible assets 1,000 1,000 1,000 Total assets $31,000 $29,000 $28,000 Accounts payable $500 $790 $615 Debt due in one year 1,000 1,000 1,000 Long-term debt 12,000 13,000 14,000 Shareholders’ equity 17,500 14,210 12,385 Total liabilities and equity $31,000 $29,000 $28,000 A. 75%. B. 80%. C. 85%.

As supplies and PPE assets on the balance sheet are consumed, they are reflected:

A) Assets are never consumed B) As a revenue on the income statement C) As an expense on the income statement D) As common stock on the balance sheet