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Use the financial information below to calculate and interpret the following ratios: A) Capital acquisitions ratio. B) Quality of income ratio. Sales revenue $159,131 Cost
Use the financial information below to calculate and interpret the following ratios: A) Capital acquisitions ratio. B) Quality of income ratio.
Sales revenue | $159,131 |
Cost of goods sold | $64,360 |
Gross profit | $94,771 |
Selling, general and administrative expenses | $8,800 |
Depreciation | $2,585 |
Total Operating Expenses | $11,385 |
Operating Income | $83,386 |
Interest Expense | $2,847 |
Net income before taxes | $80,539 |
Income tax expense | $3,414 |
Net Income | $77,125 |
Cash Used for interest payments | $2,847 |
Cash used for income tax payments | $3,414 |
Net Income | $77,125 |
Add depreciation | $6,585 |
Add the decrease in accounts receivable | $4,860 |
Add the decrease in inventory | $367 |
Subtract the increase in prepaid expenses | ($650) |
Subtract the decrease in accounts payable | ($1,202) |
Net Cash provided by (used for) operating activities | $87,085 |
Cash provided by sale of property, plan and equipment | $1,165 |
Cash provided by sale of short-term investments | $1,393 |
Cash used for purchase of property, plant, and equipment | ($8,950) |
Cash used for purchases of short-term investments | ($778) |
Net Cash provided by (used for) investing activities | ($7,170) |
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