1.
Concept Introduction:
Cash flow on total assets is calculated by dividing the cash flow of the business by the total assets of the business. Cash flow over assets shows the liquidity on its invested assets.
Cash flow on assets= Cash Flow/ Total Assets.
To Calculate:
Cash flow on assets of two recent years.
2.
Concept Introduction:
Cash flow on total assets is calculated by dividing the cash flow of the business by the total assets of the business. Cash flow over assets shows the liquidity on its invested assets.
Cash flow on assets= Cash Flow/ Total Assets.
To Calculate:
Better cash flow over assets.
3.
Concept Introduction:
Cash flow on total assets is calculated by dividing the cash flow of the business by the total assets of the business. Cash flow over assets shows the liquidity on its invested assets.
Cash flow on assets= Cash Flow/ Total Assets.
To Calculate:
Compare cash flow with the industry return.
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Loose Leaf for Financial Accounting: Information for Decisions
- Refer to the above company’s financial statements. Calculate the current and quick ratios. Has the company’s liquidity position improved or worsened? Explain. A computer manufacturer has financial statements as follows: Income Statements for Year Ending December 31 (Thousands of Dollars) 2019 2018 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (25%) 22,183 21,475 Net income $66,547 $64,425 Common dividends $56,609 $54,115 Addition to retained earnings $9,938 $10,310 Balance Sheets for Year Ending December 31 (Thousands of Dollars) Assets 2019 2018 Cash and cash equivalents…arrow_forwardConsider the balance sheets and selected data from the income statement of Keith Corporation that follow (attached) a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2015. b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015. c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2015. d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c).arrow_forward1. Calculate the following values for the company for the year ending in 20x9. Present evidence of all your calculations.a. NOPAT - Net Operating Profit after Taxesb. OCF - Operating Cash Flowc. FCF - Free Cash Flow2. Discuss what meaning each of the measures calculated in the previous question has, both for management and for investors and creditors, among other constituents.3. What is the main cause of the differences that exist between the company's earnings and the cash flows of the same evaluated period?arrow_forward
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