During 2010,Boogle reported net income of $785 million and net cash inflow from operations of $1,196 million.During 2009,their net income was $563 million and net cash inflow from operations was $1,237 million.Which of the following is incorrect about their quality of income ratios?
A)In 2009 the ratio was 2.2 and in 2010 it was 1.5.
B)Their ratio in 2009 was better than their ratio in 2010.
C)Boogle's quality of income ratios indicates poor performance because net income is less than cash flow.
D)The ratio in both years shows the company's ability to generate good cash flow from its operating activities.

Question

Quizplus · Accepted Answer

Having operating cash flows greater than net income tends to indicate good operations cash management.

During 2010,Boogle Reported Net Income of $785 Million and Net