Question: Dromeda Limited has prepared the follow-ing comparison (in thousands): Required: 1. Which of the companies above illustrates higher quality of earnings? Explain. 2. Suggest four

Dromeda Limited has prepared the follow-ing comparison (in thousands):

Required:
1. Which of the companies above illustrates higher quality of earnings? Explain.
2. Suggest four factors that would make cash flows from operating activities different from netearnings.

31 December 20X5 20X4 20X3 Net earnings Cash flows from operating activities $210 535 $670 560 $(145) 510 The same information has been collected for Panel Corporation: 31 December 20X5 20X4 20X3 Net earnings Cash flows from operating activities $210 190 $670 455 $145) (50)

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