Casey Corporation reported net income of $102,000, depreciation expense of $2,000, and cash flow from operations of

Question:

Casey Corporation reported net income of $102,000, depreciation expense of $2,000, and cash flow from operations of $86,500. Compute the quality of income ratio. What does the ratio tell you about the company’s ability to finance operating and other cash needs from operating cash inflows?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...