1.
Compute the quality of income ratio for Company A and Company U and find out the Company that has a better quality of income ratio.
2.
Compare the quality of income ratio for both the companies of Company A and Company U to the Industry and find out whether these companies are producing more or less cash from operating activities relative to net income than the average company in the industry.
3.
Compute the capital acquisitions ratio for Company A and Company P for the most recent reporting year and compare their abilities to finance purchases of property, plant and equipment with cash provided by operating activities.
4.
Compare the capital acquisitions ratio for both the companies of Company A and Company U to the Industry and ascertain the ability of each Company to finance the purchase of property, plant and equipment with cash provided by operating activities compared with that of other Companies in the Industry.
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Financial Accounting, 8th Edition
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