If net cash flows from operating activities were $296,000,net income were $200,000,and sales were $2,000,000,cash flows to sales would equal (Round amounts to one decimal place)
A)10.0 percent.
B)$96,000.
C)14.8 percent.
D)0.7 times.

Question

Quizplus · Accepted Answer

Cash flows to sales ratio = Net cash flows from operating activities / Sales

= $296,000 / $2,000,000

= 0.148 or 14.8%

Therefore, the answer is (C) 14.8 percent.

If Net Cash Flows from Operating Activities Were $296,000,net Income