A company had average total assets of $3,216,000, total cash flows of $1,320,000, cash flows from operations of $554,000, and cash flows for plant assets of $850,000. The cash flow on total assets ratio equals:
A) 17.23%.
B) 64.39%.
C) 41.04%.
D) 41.97%.
E) 26.43%.

Question

Quizplus · Accepted Answer

The cash flow on total assets ratio is calculated by dividing cash flows from operations by average total assets. So, $554,000 / $3,216,000 = 0.1723 or 17.23%.

A Company Had Average Total Assets of $3,216,000, Total Cash