A company had net cash flows from operations of $120,000,total cash flows of $500,000,and average total assets of $2,500,000.The cash flow on total assets ratio equals:
A)4.8%
B)5.0%
C)20.0%
D)20.8%
E)24.0%

Question

Quizplus · Accepted Answer

The cash flow on total assets ratio is calculated by dividing net cash flows from operations by average total assets. Here, $120,000 / $2,500,000 = 0.048 or 4.8%.

A Company Had Net Cash Flows from Operations of $120,000,total