The cash flows to total liabilities ratio for 2016 is
A) 35.6%.
B) 41.75%.
C) 56.19%.
D) 241%.

Question

Quizplus · Accepted Answer

The cash flows to total liabilities ratio is calculated by dividing the cash flows from operating activities by the total liabilities. For 2016, the cash flows from operating activities were $1,000,000 and the total liabilities were $2,800,000. Therefore, the cash flows to total liabilities ratio for 2016 is $1,000,000 / $2,800,000 = 35.6%.

The Cash Flows to Total Liabilities Ratio for 2016 Is