A company had average total assets of $2,316,000, total cash flows of $1,320,000, cash flows from operations of $455,000, and cash flows for property, plant and equipment of $850,000. The cash flow on total assets ratio equals:
A) 17.33%.
B) 20.97%.
C) 53.53%.
D) 34.47%.
E) 19.65%.

Question

Quizplus · Accepted Answer

The cash flow on total assets ratio is calculated by dividing cash flows from operations by average total assets. Therefore, the ratio is $455,000 / $2,316,000 = 0.1965 or 19.65%.

A Company Had Average Total Assets of $2,316,000, Total Cash