The Following Information Was Reported from the Statement of Cash

question 95

Essay

The following information was reported from the statement of cash flows for The W D Company for the years 2015 through 2017 in millions of dollars: $$\begin{array} { | l | r | r | r | } \hline & \text { 20X7 } &2 0 X 6 & \text { 20X5 } \\\hline \text { Net earnings } & \$ 1,300 & \$ 1,850 & \$ 1,966 \\\hline \text { Cash provided by operations } & \$ 5,599 & \$ 5,115 & \$ 5,099 \\\hline \text { Cash used by investments } & \$ ( 5,310 ) & \$ ( 5,665 ) & \$ ( 3,936 ) \\\hline \text { Cash provided/used by financing } & \$ 9 & \$ 360 & \$ ( 1,124 ) \\\hline\end{array}$$
A. Calculate the quality of earnings ratio for the years 20X5 through 20X7.
B. Interpret the quality of earnings ratio for The W D Company for the three-year period.

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Definitions:

Cumulative Recorder

A device used in behavioral psychology to visually represent the rate of responses over time in a graph form.

Shaping

A method of teaching or behavior modification that involves reinforcing successive approximations toward a desired behavior.

Shaping

The process of reinforcing successive approximations to a desired behavior.

Operant Conditioning

A learning strategy in which the level of a specific behavior is adjusted using incentivization or penal measures.