During 2019,Boogle reported net income of $785 million and net cash inflow from operating activities of $1,196 million.During 2018,Boogle's net income was $563 million and net cash inflow from operations was $1,237 million.Which of the following is incorrect about the quality of income ratios?
A)In 2018 the ratio was 2.2 and in 2019 it was 1.5.
B)The ratio in 2018 was better than the ratio in 2019.
C)Boogle's quality of income ratios indicate poor performance because net income is less than cash flow.
D)The ratio in both years shows the company's ability to generate positive cash flow from its operating activities.

Question

Quizplus · Accepted Answer

This is the only incorrect statement. A lower quality of income ratio does not necessarily indicate poor performance. It simply means that a larger portion of the company's net income is coming from non-operating activities, such as investments or financing. The ratio in both years shows the company's ability to generate positive cash flow from its operating activities.

During 2019,Boogle Reported Net Income of $785 Million and Net