Use the financial information below to calculate and interpret the following:
A.Capital acquisitions ratio.
B.Times interest earned ratio.
C.Quality of income ratio.
Sales revenue Cost of goods sold Gross profit Selling, general and administrative expenses Amortization Total operating expenses Operating income Interest expense Net income before taxes Income tax expense Net income $159,13164,36094,7718,8002,58511,38583,3862,84780,5393,414$77,125 Cash used for interest payments $2,847
Cash used for income tax payments $3,414 Net income Add amortization Add the decrease in accounts receivable Add the decrease in inventory Subtract the increase in prepaid expenses Subtract the decrease in accounts payable Net cash provided by operating activities $77,1252,5858,860367(650)(1,202)$87,085 Cash provided by sale of property, plant, and equipment Cash provided by sale of short-term investments Cash used for purchases of property, plant, and equipment Cash used for purchases of short-term investments Net cash provided by (used for) investing activities $1,1651,393(8,950)(778)($7,170)
Definitions:
Brainstorming
A group creativity technique designed to generate a large number of ideas for the solution of a problem.
Creative Thinking
The process of thinking in novel ways to generate new and innovative ideas or solutions.
Decision Making
The process of selecting a course of action from multiple alternatives, often involving judgment, evaluation, and the consideration of possible outcomes.
Group Decisions
Decisions made by a collective of individuals, often benefiting from diverse opinions and shared responsibility.