A company reported average total assets of $1,240,000 in Year 1 and $1,510,000 in Year 2. Its net operating cash flow was $102,920 in Year 1 and $138,920 in Year 2. (1) Calculate its cash flow on total assets ratio for both years. (2) Did its cash flow on total assets improve in Year 2 versus Year 1?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
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Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 17E
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A company reported average total assets of $1,240,000 in Year 1 and $1,510,000 in Year 2. Its net operating
cash flow was $102,920 in Year 1 and $138,920 in Year 2. (1) Calculate its cash flow on total assets
ratio for both years. (2) Did its cash flow on total assets improve in Year 2 versus Year 1?

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