Cash Flow Ratios Below are data extracted from the financial statements for Pagoda Company.

Compute the following for both 2008 and 2009:
1. Cash flow-to-net income ratio 2. Cash flow adequacy ratio

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Net income Pagoda Company Selected Financial Statement Data For the Years Ended December 31, 2009 and 2008 Cash from operating activities Cash paid for purchase of fixed assets Cash paid for interest. Cash paid for income taxes 2009 2008 $51,000 $ 63,500 38,200 205,000 47,000 215,000 21,000 26,000 23,000 50,100