A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:
A) 20.0%.
B) 24.0%.
C) 5.0%.
D) 20.8%.
E) 4.8%.

Question

Quizplus · Accepted Answer

The cash flow on total assets ratio is calculated as (Net cash flows from operations / Average total assets) * 100. So, ($120,000 / $2,500,000) * 100 = 4.8%.

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