During the year,Heckart Corporation had net sales of $250,000,net income of $25,000,average total assets of $350,000,dividend payments of $17,500,net cash flows from operating activities of $37,500,purchases of plant assets of $37,500,and sales of plant assets of $45,000.Cash flow yield equals (Round amounts to one decimal place)
A) 2.1 times.
B) 1.5 times.
C) 3.0 times.
D) 1.9 times.

Question

Quizplus · Accepted Answer

Cash flow yield is calculated as net cash flows from operating activities divided by net income. Here, it is $37,500 / $25,000 = 1.5 times.

During the Year,Heckart Corporation Had Net Sales of $250,000,net Income