Compute the quality of income ratio for each firm and what


Computing Quality of Income Ratios

Consider the following information for two high-tech companies:


Oxford, LTD

Kendall, LTD


(Dollars in thousands)

Cash provided by operating activities

$5,600

$ 7,419

Net income

$ 684

$12,916

Required

a. Compute the quality of income ratio for each firm.

b. What inferences can be drawn from these ratios?

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Accounting Basics: Compute the quality of income ratio for each firm and what
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