When considering an investment, which of the following is not one of the three critical factors used to evaluate future earnings potential of that investment. a. Global event factors. b. Economy wide factors. c. Industry factors d. Individual company factors. Which of the following ratios is not an indicator of a company's short-term financial strength? a. Earnings quality. b. Current ratio. c. Cash ratio. d. Quick ratio. The base amount in preparing component percentages for an income statement is usually which of the following? a. Income from operations. b. Gross profit. c. Net income. d. Net sales. Depreciation of Long-lived Assets Covey Company purchased a machine on January 1, 2010, by paying cash of $250,000. The machine has an estimated useful life of five years, is expected to produce 500,000 units, and has an estimated residual value of $25,000