Dan's Products, Inc., reported net income of ($ 80,000), depreciation expense of ($ 2,000), and cash flow

Question:

Dan's Products, Inc., reported net income of $\$ 80,000$, depreciation expense of $\$ 2,000$, and cash flow from operations of $\$ 60,000$. Compute the quality of income ratio. What does the ratio tell you about the company's accrual of revenues and/or deferral of expenses?

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