Ratio AnalysisFollowing are totals from selected financial statements of Magdalene Corporation for the years ended December 31, 2019 and 2020: 12/31/19 12/31/20Cash flows provided by operating activities $102,000 $88,000 Cash flows provided by investing activities 19,000 34,000 Cash flows used by financing activities (43,000) (58,000)Net increase in cash $78,000 $64,000 Net income $61,000 $31,000 Current assets 120,000 137,000 Total assets 576,000 661,000 Current liabilities 86,000 113,000 Total liabilities 344,000 411,000 Required:1. Next Level Calculate the operating cash flow ratio for the year ended December 31, 2020. If required, round your answer to two decimal places.Operating cash flow ratio = 2. Next Level Calculate the operating cash flow to total liabilities ratio for the year ended December 31, 2020. If required, round your answer to two decimal places.Operating cash flow to total liabilities ratio =

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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 32BE

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Ratio Analysis

Following are totals from selected financial statements of Magdalene Corporation for the years ended December 31, 2019 and 2020:

	12/31/19	12/31/20
Cash flows provided by operating activities	$102,000	$88,000
Cash flows provided by investing activities	19,000	34,000
Cash flows used by financing activities	(43,000)	(58,000)
Net increase in cash	$78,000	$64,000
Net income	$61,000	$31,000
Current assets	120,000	137,000
Total assets	576,000	661,000
Current liabilities	86,000	113,000
Total liabilities	344,000	411,000

Required:

1. Next Level Calculate the operating cash flow ratio for the year ended December 31, 2020. If required, round your answer to two decimal places.

Operating cash flow ratio =

2. Next Level Calculate the operating cash flow to total liabilities ratio for the year ended December 31, 2020. If required, round your answer to two decimal places.

Operating cash flow to total liabilities ratio =

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