Which of the following statements is true? a. leverage reduces the expected values of both ebit and net income. b. leverage increases expected roe but decreases expected eps. c. leverage decreases the volatility of both roe and eps. d. investors can create their own leverage within their own portfolios.

Rebel technology maintains its records using cash-basis accounting. during the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. at the beginning of the year, customers owe rebel $1,000. by the end of the year, customers owe $6,600. at the beginning of the year, rebel owes salaries of $5,600. at the end of the year, rebel owes salaries of $3,300. determine cash-basis net income and accrual-basis net income for the year.