Graphs for two companies, Ming Ltd. and Tom Ltd., are provided below, showing comparisons of net earnings

Question:

Graphs for two companies, Ming Ltd. and Tom Ltd., are provided below, showing comparisons of net earnings and cash flows over a period of time.


Required:

Interpret the graphs and conclude, with an explanation, on which company appears to have a better quality of earnings.

Tom Ltd. Net Earnings vs. Operating Cash Flows 20X5 to 20X9

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Related Book For  book-img-for-question

Intermediate Accounting Volume 1

ISBN: 9781260881233

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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