Below are data extracted from the financial statements of Perfume Pagoda Company.

Compute the following for both 2011 and 2012:
1. Cash flow-to-net income ratio
2. Cash flow adequacyratio

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Perfume Pagoda Company Selected Financial Statement Data For the Years Ended December 31, 2012 and 2011 2012 2011 $55,000 43,000 50,000 25,000 30,000 $ 75,000 Net income Cash from operating activities Cash paid for purchase of fixed assets. Cash paid for interest. Cash paid for income taxes. 240,000 30,000 55,000