ABC Inc. reported the following information for the current year: net income \(\$ 100,000 ; \$ 5,000\) in accounts receivable; \(\$ 5,000\) in inventory; \(\$ 6,000\) in accounts payable. Cash flow from operating activities \(\$ 25,000\); cash flow from investing activities \(\$ 50,000\). What is the quality of earnings ratio?

a. 2

b. 4

c. 3

d. 1

\section*{OBJECTIVE 2 Cornerstone Exercise