Exercise 6-8 The following comparative information is available for Larkspur, Inc. for 2017.

LIFO	FIFO
Sales revenue	$90,640	$90,640
Cost of goods sold	39,610	26,970
Operating expenses (including depreciation)	24,850	24,850
Depreciation	9,620	9,620
Cash paid for inventory purchases	31,500	31,500

Determine net income under each approach. Assume a30% tax rate.

LIFO	FIFO
Net income	$	$

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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.

LIFO	FIFO
Net cash provided by operating activities	$	$

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	.

Calculate the quality of earnings ratio under each approach.(Round answers to 2 decimal places, e.g. 5.15.)

LIFO	FIFO
Quality of earnings ratio