Part A: A high quality of earnings is indicated by: Declaration of both cash and stock dividends A...

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Accounting

Part A:
A high quality of earnings is indicated by:
Declaration of both cash and stock dividends
A history of increasing earnings and conservative accountingmethods
Earnings derived largely from newly introduced products
Use of FIFO method of inventory during sustained inflation.
Part B:
The Horseshoe Company has cash of $50,000 accounts receivable of$100,000; inventory of $250,000, prepaid insurance of $200,000 andcurrent liabilities of $300,000. What is their working capital?
$600,000
$300,000
2.0
1.33
Part C:
In evaluating the quality of a company's earnings, which of thefollowing factors is LEAST important?
the accounting methods used by management
the trend of the company's earnings over a period of years
the dollar amount of earnings per share
the stability and sources of the company's earnings

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Answer Part A Correct answer is A history of increasing earnings and conservative accounting methods Explanation Companys accounting method and past record of consistently increasing earnings is an indicator of high quality earning Declaration of See Answer

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	the accounting methods used by management
	the trend of the company's earnings over a period of years
	the dollar amount of earnings per share
	the stability and sources of the company's earnings