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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
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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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
Transcribed Image Text: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
For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in wages payable Increase in income tax payable FRANK CORPORATION Statement of Cash Flows Net cash flow from operating activities Purchase of investments Purchase of machinery Cash flows from investing activities: Sale of machinery Net cash flow from investing activities Cash flows from financing activities: Borrowing on long-term note Payment of cash dividend Net cash inflow from financing activities Net increase in cash during 2020 Cash, beginning of 2020 Cash, end of 2020 47,000 (4,000) 10,200 (5,500) 9,000 (700) 2,500 12,500 (6,000) (10,000) 17,000 (11,000) $ 58,500 (3,500) 6,000 61,000 22,000 83,000
Transcribed Image Text:For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Decrease in accounts payable Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in wages payable Increase in income tax payable FRANK CORPORATION Statement of Cash Flows Net cash flow from operating activities Purchase of investments Purchase of machinery Cash flows from investing activities: Sale of machinery Net cash flow from investing activities Cash flows from financing activities: Borrowing on long-term note Payment of cash dividend Net cash inflow from financing activities Net increase in cash during 2020 Cash, beginning of 2020 Cash, end of 2020 47,000 (4,000) 10,200 (5,500) 9,000 (700) 2,500 12,500 (6,000) (10,000) 17,000 (11,000) $ 58,500 (3,500) 6,000 61,000 22,000 83,000
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