Question
In the first scenario, a company reports a net income of $8.2 million. They incurred $400,000 in depreciation expenses, and their accounts receivable increased by
In the first scenario, a company reports a net income of $8.2 million. They incurred $400,000 in depreciation expenses, and their accounts receivable increased by $180,000, while accounts payable decreased by $250,000. Additionally, the company invested $850,000 in equipment. From this data, we need to determine the operating cash flow, which reflects the company's ability to generate cash from its core operations. Alongside, we'll calculate the quick ratio, indicating the company's liquidity position concerning its ability to meet short-term obligations with its most liquid assets.
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