A company's cash flow on total assets ratio equals 16%.If average total assets equal $2,937,500 and total cash flows equal $600,000,what is the amount of cash flows from operations?
A)$18,359,375
B)$600,000
C)$470,000
D)$96,000
E)$566,000

Question

Quizplus · Accepted Answer

Cash flow on total assets ratio = Cash flows from operations / Average total assets
0.16 = Cash flows from operations / $2,937,500
Cash flows from operations = $470,000

A Company's Cash Flow on Total Assets Ratio Equals 16