The following comparative information is available for Rose Company for 2025.

Instructionsa. Determine net income under each approach. Assume a 20% tax rate.b. Determine net cash provided by operating activities under each approach. Assume that all sales were on a cash basis and that income taxes and operating expenses, other than depreciation, were on a cash basis.c. Calculate the quality of earnings ratio under each approach and explain your findings. (Round answer to two decimal places.)

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Sales revenue Cost of goods sold Operating expenses (including depreciation) Depreciation Cash paid for inventory purchases LIFO $86,000 38,000 27,000 10,000 32,000 FIFO $86,000 29,000 27,000 10,000 32,000