Question - A recent annual report for BubbliCo contained the following information for the period (dollars in millions):
Net income $5,158
Depreciation and amortization 1,559
Increase in accounts receivable 569
Increase in inventory 358
Increase in prepaid expense 71
Increase in accounts payable 725
Decrease in taxes payable 199
Increase in other current liabilities 757
Cash dividends paid 2,556
Treasury stock purchased 4,725
Required:
1. Compute cash flows from operating activities for BubbliCo using the indirect method.
2. Compute the quality of income ratio.