Lucas Company Has Provided the Following Information

question 74

Multiple Choice

Lucas Company has provided the following information:
Cash flow from operating activities,$360,000;
Net income,$306,000;
Interest expense,$30,000;
Interest cash payments,$20,000;
Income tax payments,$240,000;
Income tax expense,$246,000.
What was Lucas' quality of income ratio?

• A)0.85
• B)0.74
• C)1.18
• D)0.93

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Definitions:

Brain Damage

Injury to the brain that can result in impairments or disabilities in cognitive function, physical abilities, or emotional behavior.

Oval Window

A membrane-covered opening that leads from the middle ear to the cochlea of the inner ear, transmitting sound vibrations.

Auditory Canal

The tube that runs from the outer ear to the middle ear, which sound waves travel through to reach the eardrum.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, facilitating hearing.