Explain what is meant by high quality of earnings

Reference no: EM131827086

Question: Dorsett Corporation reported sales revenue of $257,000, net income of $45,300, cash of $9,300, and net cash provided by operating activities of $23,200. Accounts receivable have increased at three times the rate of sales during the last 3 years. Instructions

(a) Explain what is meant by high quality of earnings.

(b) Evaluate the quality of the company's earnings. Discuss your findings.

Reference no: EM131827086

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