3. Compute the quality of earnings ratio and the capital expenditures ratio. (Enter your answers in numbers and not in percentages.Round the final answers to 2 decimal places.)Quality of earnings ratioCapital expenditures ratio For the Year Ended December 31, 2020Cash flows from operating activities:Net earningsAdd (deduct) items not affecting cash:Decrease in accounts payableDepreciation expenseIncrease in accounts receivableDecrease in inventoryDecrease in wages payableIncrease in income tax payableFRANK CORPORATIONStatement of Cash FlowsNet cash flow from operating activitiesPurchase of investmentsPurchase of machineryCash flows from investing activities:Sale of machineryNet cash flow from investing activitiesCash flows from financing activities:Borrowing on long-term notePayment of cash dividendNet cash inflow from financing activitiesNet increase in cash during 2020Cash, beginning of 2020Cash, end of 202047,000(4,000)10,200(5,500)9,000(700)2,50012,500(6,000)(10,000)17,000(11,000)$58,500(3,500)6,00061,00022,00083,000

Quality of earnings ratio is an important metric used for determining the financial health and…

3. Compute the quality of earnings ratio and the capital expenditures ratio. (Enter your answers in numbers and not in percentages. Round the final answers to 2 decimal places.) Quality of earnings ratio Capital expenditures ratio

3. Compute the quality of earnings ratio and the capital expenditures ratio. (Enter your answers in numbers and not in percentages. Round the final answers to 2 decimal places.) Quality of earnings ratio Capital expenditures ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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