A company had average total assets of $1,760,000, total cash flows of $1,320,000, cash flows from operations of $205,000, and cash flows from financing of $850,000. The cash flow on total assets ratio equals:
A) 1.33%.
B) 8.58%.
C) 11.65%.
D) 15.5%.
E) 75%.

Question

Quizplus · Accepted Answer

Cash flow on total assets ratio = Total cash flows / Average total assets = $1,320,000 / $1,760,000 = 0.1165 = 11.65%

A Company Had Average Total Assets of $1,760,000, Total Cash