Ratios: Quality of Earnings Ratio Video Lessons

Video Thumbnail

Concept

Problem: L Company reported the following results for the year: Sales                                                $ 2,000,000 Gross Profit                                            900,000 Net Income                                             360,000 Cash from Operating Activities               720,000 L Company’s quality of earnings ratio was: a) .36 b) 2.0 c) 2.8 d) 1.8

FREE Expert Solution
Problem Details

L Company reported the following results for the year:

Sales                                                $ 2,000,000
Gross Profit                                            900,000
Net Income                                             360,000
Cash from Operating Activities               720,000

L Company’s quality of earnings ratio was:

a) .36

b) 2.0

c) 2.8

d) 1.8

Frequently Asked Questions

What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Ratios: Quality of Earnings Ratio concept. You can view video lessons to learn Ratios: Quality of Earnings Ratio. Or if you need more Ratios: Quality of Earnings Ratio practice, you can also practice Ratios: Quality of Earnings Ratio practice problems.

What is the difficulty of this problem?

Our tutors rated the difficulty ofL Company reported the following results for the year: Sale...as medium difficulty.