1.
Introduction: Cash flow on total assets is an efficiency ratio that rates actual cash flows to the company assets without being affected by income recognition or income measurements. The cash flow on total assets ratio is calculated by dividing cash flows from operations by the average total assets.
To compute: The cash flow on total assets.
2.
Introduction: Cash flow on total assets is an efficiency ratio that rates actual cash flows to the company assets without being affected by income recognition or income measurements. The cash flow on total assets ratio is calculated by dividing cash flows from operations by the average total assets.
To explain: The comparison between two competitors.
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Chapter 12 Solutions
NOVA CC - ACC 211: Connect for Financial and Managerial Accounting with PROCTORIO PLUS
- using the income statement for chester corp below, what is operating cash flow (OCF) for the company? sales- 925,000 COGS- 458,000 Dep Exp- 195,000 EBIT- 272,000 Int exp- 55,800 EBT- 216,200 Taxes- 45,402 NI- 170,798arrow_forwardMazaya Company has the following information available: Net Income R.O. 55,000; Cash Provided by Operations R.O. 68,200; Cash Sales R.O. 143,000; Capital Expenditures R.O.24,200; Dividends Paid R.O. 6,600. What is Mazaya's free cash flow? Select one: a. R.O.61,600 b. R.O.37,400 c R.O.44,000 d. R.O.24,200arrow_forwardRevo Company reports average total assets of $200,000, revenue of $153,000, net income of $51,000, and cash flow from operations of $58,000. (1) Compute its cash flow on total assets. (2) Is Revo's cash flow on total assets better than the 18% for its competitor, Epix Company? (1) Cash flow on total assets (2) Is Revo's cash flow on total assets better than the 18% for its competitor, Epix Company? %arrow_forward
- Preparing the statement of cash flows—direct method The income statement and additional data of Value Corporation follow: a. Collections from customers are $13,000 more than sales. b. Dividend revenue, interest expense, and income tax expense equal their cash amounts. c. Payments to suppliers are the sum of cost of goods sold plus advertising expense. d. Payments to employees are $3,000 more than salaries expense. e. Cash payment for the acquisition of plant assets is $102,000. f. Cash receipts from sale of land total $29,000. g. Cash receipts from issuance of common stock total $38,000. h. Payment of long-term notes payable is $10,000. i. Payment of dividends is $9,000. j Cash balance at June 30, 2017, was $21,000; at June 30, 2018, it was $43,000. Prepare Value Corporations statement of cash flows for the year ended June 30, 2018. Use the direct method.arrow_forwardTwo competitors in the construction supply industry report the following selected financial data: Company A Company B Sales $46,570 $66,676 Net income 1,793 2,670 Operating cash flows 3,954 5,065 Total assets, beginning 33,755 40,077 Total assets, ending 32,175 41,214 1. Calculate the cash return on assets, cash flow to sales ratio, and asset turnover ratio for each company. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Cash Return on Assets Company A % Company B % Cash Flow to Sales Company A % Company B % Asset Turnover Company A times Company B times 2-a. Which company has the better cash flow to sales ratio?multiple choice 1 Company B Company A 2-b. Which company has the better asset turnover ratio?multiple choice 2 Company A Company Barrow_forwardQ. Ballister Company uses the indirect method to determine its cash flow. If A/R increased by 30K and A/P decreased by 15K, what would the calculation of Cash Flow from be? Operationsarrow_forward
- Free Cash Flow Ratio Problem Instructions: Calculate the Free Cash Flow Ratio for Lucas Company. Lucas Company had net sales for the year of $450,500, cost of goods sold of $145,500, net income of $65,400, net cash provided by operating activities of $115,000, net cash used by investing activities of $55,200, capital expenditures of $40,500, and cash dividends of $24,500 in dividends for the year. What is the free cash flow for the year? Free Cash Flow Ratioarrow_forwardTwo competitors in the construction supply industry report the following selected financial data: Sales Net incone Operating cash flows Tatal assets, beginning Total assets, ending Сопрany A $ 46,770 1,693 Company в $ 66,776 2,810 5,065 3,994 33,955 32,475 40, 827 41,264 1. Colculate the cosh return on essets, cssh flow to soles retio, and esset turnover ratio for each company. (Do not round Intermedlate calculations. Round your final answers to 2 decimal places.) Caeh Return on Asseta Campany A % Company B % Caah Flow to Sales Campany A Company B % Aseet Turnover Campany A times Company B times 2-a. Which company has the better cash flow to sales ratio? O Company B O Company A 2-b. Which company has the better asset turnover ratio? O Company A O Company Barrow_forwardConsider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including some information from the cash flow statement: (amounts are in millions) Balance Sheet Cash and short-term Investments Accounts receivable Inventory Other current assets Long-lived assets Total assets Current liabilities Total liabilities Noncontrolling interest Shareholders equity Total liabilities and equity Income Statement. Sales Cost of sales Gross margin Earnings before interest and taxes Interest Taxes Income from discontinued operations Net income. Share price Earnings per share. Number of outstanding shares (millions) Cash Flows Cash flow from operations Capital expenditures Dividends Mmm Good Foods Incorporated 2019 $ 716 382 48 432 4,068 $5,646 $1,429 11,158 (5,512) $5,646 $ 6,486 3,558 $ 2,928 $1,637 319 336 613 $1,595 $75 5.31 356.2 $1,216 416 754arrow_forward
- Suppose your company sells goods for $300, of which $200 is received in cash and $100 is onaccount. The goods cost your company $125 and were paid for in a previous period. Your companyalso recorded salaries and wages of $70, of which only $30 has been paid in cash.Required:1. Show the journal entries to record these transactions.2. Calculate the amount that should be reported as net cash flow from operating activities.3. Calculate the amount that should be reported as net income.4. Show how the indirect method would convert net income (requirement 3) to net cash flowfrom operating activities (requirement 2).5. What general rule about converting net income to operating cash flows is revealed by youranswer to requirement 4?arrow_forwardYou are analyzing the Statement of Cash flows for... You are analyzing the Statement of Cash flows for Coffey Corporation. You have the following information: Beginning Cash: $220 Operating Activity: $497 Investment Activity: $598 Financing Activity: -$212 Calculate the Net cash increase/decrease:arrow_forwarduse the information in the income statement below to calculate operating cash flow (OCF). sales- $1,280 COGS- $620 Dep Exp- $180 EBIT- $480 Int Exp- $110 EBT- $370 Taxes- $78 NI- $292arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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