6) Multiple Choice (10 Points) Circle the letter that best answers each of the following. The measures most often used in evaluating solvency-the current ratio, quick ratio, and amount of working capital are developed from amounts appearing in the: A) Balance sheet. B) Income statement. C) Statement of retained earnings. D) Statement of cash flows. 1 2. Which of the following is not a measure of profitability? A) P/E Ratio. B) ROI C) ROE D) NLR. 3- The current ratio: roughout the operating cycle B) Is computed by subtracting current liaailities from current assets. C) Is computed by dividing current assets by current liabilities. D) Remains unchanged throughout the operating cycle. E) Is a measure of short-term profitability