1. Nancy's Cookie Shop reported equipment at $120,000 and $30,000 accumulated depreciation on its December 31, 2013, balance sheet. During 2014, the shop purchased equipment costing $30,000 and sold equipment costing $10,000 (book value $4,000) for $1,000. On December 31, 2014, net equipment was $98,000. Using the indirect method, Samantha's would report depreciation expense on its statement of cash flows for 2014 of:

$18,000.

$14,000.

$22,000.

$30,000.

2. Short-term liquidity ratios include the:

acid-test ratio.

 payout ratio.

 debt to total assets ratio.

profit margin ratio.

3. Sunshine Paint reported sales of $500,000, total assets of $300,000, total owners' equity of $160,000, current assets of $100,000, current liabilities of $40,000, and cash of $30,000. In a common-size analysis of the balance sheet, cash would be shown as:

30%.

6%.

50%.

10%.