Please answer 12 and 13

Which of the* following statement regarding the current ratio is true? The current ratio is calculated as the difference between current assets and current liabilities. Other things being equal, the lower the current ratio, the more assurance creditors have about being paid in full and on time. The current ratio is widely used to evaluate solvency. The comparison of the current ratio are cash and property, plant, and equipment. The comparison of a company's current ratio to the industry average is meaningless Cross profit is defined as net income before the effect of income taxes. the income generated by the company after subtracting all operating expenses the difference between total assets and total liabilities. net income less the dividends declared during the period. sales minus cost of goods sold