The Statement of Cash Flows of Aqua Company for the Current

The statement of cash flows of Aqua Company for the current year includes the following information:
The company's income statement for the current year is as follows:
The balance sheet reports that the beginning balances in interest payable and income taxes payable were the same as their respective ending balances.Use the financial information above to calculate and interpret the:
a.Capital Acquisitions Ratio,
b.Quality of Income Ratio.
$\begin{array}{lr}\text { Net Income } & \$ 77,125 \\\text { Adjustments } & \\\text { Add amortization } & 6,585 \\\text { Add the decrease in accounts receivable } & 4,860 \\\text { Add the decrease in inventory } & (667) \\\text { Subtract the increase in prepaid expenses } & (1,202) \\\text { Subtract the decrease in accounts payable } & \$ 87,085\\\\\text { Cash provided by sale of property, plant, and equipment }&\$ 1,165 \\\text { Cash provided by sale of short-term investments } & 1,393\\\text { Cash used for purchases of property, plant, and equipment }&(8,950) \\\text { Cash used for purchases of short-term investments }&(778)\\\text { Net cash used by investing activities }&(\$7,170)\end{array}$ $$\begin{array} { l r } \text { Sales revenue } & \$ 159,131 \\\text { Cost of goods sold } & 60,360 \\\text { Gross profit } & 98,771 \\\text { Selling, general and administrative expenses } & 8,800 \\\text { Amortization } & 6,585 \\\text { Total operating expenses } & 15,385 \\\text { Operating income } & 83,386 \\\text { Interest expense } & 2,847 \\\text { Net income before taxes } & 80,539 \\\text { Income tax expense } & 3,414 \\\text { Net income } & \$ 77,125\end{array}$$