Solution-Compute the quality of income ratio for each firm

Compute the quality of income ratio for each firm

Reference no: EM13522167

Computing Quality of Income Ratios

Consider the following information for two high-tech companies:

	Oxford, LTD	Kendall, LTD
	(Dollars in thousands)
Cash provided by operating activities	$5,600	$ 7,419
Net income	$ 684	$12,916

Required

a. Compute the quality of income ratio for each firm.

b. What inferences can be drawn from these ratios?

Reference no: EM13522167

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Compute the quality of income ratio for each firm

Reference no: EM13522167

Reference no: EM13522167

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