In applying the indirect method, depreciation expense is_________________.

a.) subtracted from net income because it is a non-cash expense.

b.) not shown on the statement of cash flows prepared using the indirect method.

c.) added to net income because it does not require a payment of cash.

d.) subtracted from cash from operating activities because it is a non-cash experience.

Use the following information for Equitable, Inc. to answer the following question(s) Equitable issued no new common stock and had 100,000 common shares issued and outstanding during 2011. Equitable has no preferred stock.

Net income for the year ended Dec 31 2011.........$370000

Retained earnings Dec 31 2010..........................$280000

Retained earnings Dec 31 2011..........................$360000

Total shareholders equity at Dec 31 2011............$725000

Total liabilities at Dec 31 2010...........................$105000

Total liabilities at Dec 31 2011..........................$385000

Total assets at Dec 31 2010............................$750000

What was earning per share for the year ended Dec 31 2011?

a.) $370,000

b.) $3.70

c.) $7.50

d.) $0.51