The balance sheet of Computer World reports total assets of $350,000 and $450,000 at the beginning and end of the year,respectively.Sales revenues are $800,000,net income is $100,000,and net cash flows from operating activities are $150,000.What is Computer World's cash flow to sales?
A)15.6%.
B)25.0%.
C)18.8%.

Question

Quizplus · Accepted Answer

Cash flow to sales = (Net cash flows from operating activities / Sales revenues) x 100%
Cash flow to sales = ($150,000 / $800,000) x 100%
Cash flow to sales = 18.8%

The Balance Sheet of Computer World Reports Total Assets of $350,000