Lucas Company Has Provided the Following Information: • Cash Flow

question 12

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' earnings quality ratio?

• A)0.85
• B)0.74
• C)1.18
• D)0.93

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