Question
During 2016, Boogle reported net income of $797 million and net cash inflow from operating activities of $1,244 million. During 2015, Boogle's net income was
During 2016, Boogle reported net income of $797 million and net cash inflow from operating activities of $1,244 million. During 2015, Boogle's net income was $587 million and net cash inflow from operations was $1,297 million. Which of the following is incorrect about the quality of income ratios?
-In 2015 the ratio was 2.2 and in 2016 it was 1.6
-The ratio in both years shows the company's ability to generate positive cash flow from its operating activities.
-Boogle's quality of income ratios indicate poor performance because net income is less than cash flow.
-The ratio in 2015 was better than the ratio in 2016.
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