Dorsett Corporation reported sales revenue of $257,000, net income of $45,300, cash of $9,300, and net cash provided by operating activities of $23,200 Accounts receivable have increased at three times the rate of sales during the last 3 years Instructions (a) Explain what is meant by high quality ...

a Earnings have high quality if they provide a full and transparent depiction of how a company perfo ...

Dorsett Corporation reported sales revenue of $257,000, net income of $45,300, cash of $9,300, and net cash

Question:

Dorsett reported sales revenue of $257,000, net income of $45,300, cash of $9,300, and net cash provided by operating activities of $23,200. have increased at three times the rate of sales during the last 3 years.
Instructions
(a) Explain what is meant by high quality of earnings.
(b) Evaluate the quality of the company's earnings. Discuss your findings.
(c) What factors might have contributed to the company's quality of earnings?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...