68. 
    

    • Company DEF prepares its financial statements for the quarter ended June 30th, 20XX.
    • The income statement indicates total revenues of $1,000,000 and total expenses of $700,000, resulting in net income of $300,000.
    • The balance sheet shows total assets of $4,000,000, total liabilities of $1,500,000, and total stockholders' equity of $2,500,000.
    • Additionally, the statement of cash flows reports operating cash flows of $400,000, investing cash flows of $(200,000), and financing cash flows of $(100,000).

69. Requirements:

    • Calculate the operating income and net income for the quarter.
    • Assess the solvency position by computing the debt-to-equity ratio.
    • Analyze the cash flow adequacy by reviewing the cash flow from operations.
    • Interpret the financial performance and cash flow management of Company DEF.