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A company had net cash flows from operations of $123,000, cash flows from financing of $336,000, total cash flows of $503,000, and average total assets of $7,350,000. The cash flow on total assets ratio equals:______.
a. 22.0%.
b. 7.0%.
c. 4.5%.
d. 14.3%.
e. 154.0%.

Answer :

Answer:

Cash flow on total assets ratio = 1.67% (Approx)

Explanation:

Given:

Cash flows from operations = $123,000

Cash flows from financing = $336,000

Total cash flows = $503,000

Average total assets = $7,350,000

Find:

Cash flow on total assets ratio

Computation:

Cash flow on total assets ratio = [Cash flows from operations / Average total assets]100

Cash flow on total assets ratio = [$123,000 / $7,350,000]100

Cash flow on total assets ratio = 1.67% (Approx)

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