Each of the following is included in computing the acid-test ratioexcept:

a.shortterminvestments

b.cash

c.receivables

d.supplies

Noncashcharges that are added back to net income in determining cash provided by

operations under theIndirect Method do not include:

a.Depreciation expense

b.An increase in inventory.

c.Amortization expense

d.Loss on sale of equipment.

Candle Company reported net income of$100,000for the year ended December31,2012.

During the year,inventories increased by$21,000,accounts payable decreased

by$24,000,depreciation expense was$30,000,and a gain on disposal of equipment of

$17,000was recorded.Net cash provided by operations in2012using theindirect methodwas:

a.$90,000.

b.$68,000.

c.$110,000.

d.$144,000.

Santo Corporation had net income of$300,000and paid dividends to common

stockholders of$50,000in2019.The weighted average number of shares outstanding

in2019was50,000shares.Santo Corporation's commonstock is selling at$40per share

on the New York Stock Exchange.Santo Corporation's price - earnings ratio is:

a.8 times

b.5 times

c.7.5 times

d.6 times