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Company PQR prepares its financial statements for the quarter ended June 30th, 20XX. The income statement shows total revenues of $800,000 and total expenses of



    • Company PQR prepares its financial statements for the quarter ended June 30th, 20XX.
    • The income statement shows total revenues of $800,000 and total expenses of $600,000, resulting in net income of $200,000.
    • The balance sheet indicates total assets of $2,500,000, total liabilities of $1,000,000, and total stockholders' equity of $1,500,000.
    • Additionally, the statement of cash flows reports operating cash flows of $300,000, investing cash flows of $(150,000), and financing cash flows of $(50,000).
  1. 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 PQR.

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