Following details are given for a company:Average total assetsTotal cash flowsCash flow from operationsCash flow from financingCash flow on total assets ratio is:a. 43.50%b. 22.57%c. 11.93%d. 77.40%$1,860,000$1,440,000$235,000$810,000JL

Cash flow is very important in the business and valuation of the business and is very important for…

Answered: Average total assets Total cash flows…

Average total assets Total cash flows Cash flow from operations Cash flow from financing $1,860,000 $1,440,000 $235,000 $810,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 10MCQ

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Concept explainers

Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.

Question

Following details are given for a company:
Average total assets
Total cash flows
Cash flow from operations
Cash flow from financing
Cash flow on total assets ratio is:
a. 43.50%
b. 22.57%
c. 11.93%
d. 77.40%
$1,860,000
$1,440,000
$235,000
$810,000
JL

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