The balance sheet of Storage Solutions reports total assets of $300,000 and $350,000 at the beginning and end of the year,respectively.The cash return on assets for the year is 10%.What is Storage Solutions' net cash flows from operating activities for the year?

Question

Quizplus · Accepted Answer

The average total assets for the year is ($300,000 + $350,000) / 2 = $325,000. The cash return on assets is 10%, so the net cash flows from operating activities is 10% of $325,000, which is $32,500.

The Balance Sheet of Storage Solutions Reports Total Assets of $300,000