Dromeda Limited has prepared the follow-ing comparison (in thousands): Required: 1. Which of the companies above illustrates

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 factors that would make cash flows from operating activities different from netearnings.

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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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Question Posted: Feb 17, 2015 09:04 AM

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Dromeda Limited has prepared the follow-ing comparison (in thousands): Required: 1. Which of the companies above illustrates

Question:

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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Requirement 1 Panel has higher quality of earnings because earnings and cash flow from oper...View the full answer

Intermediate Accounting

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