For the current year, Cart Company's net cash flow from operating activities is $240,000; its beginning total liabilities were $400,000, and its ending total liabilities were $900,000.
The company's operating-cash-flow-to-total-liabilities ratio for the year is:
A) 0.32
B) 0.37
C) 0.27
D) 0.60

Question

Quizplus · Accepted Answer

$240,000 / [($400,000 + $900,000) / 2] = 0.37

For the Current Year, Cart Company's Net Cash Flow from Operating