Asked by Kolby Finnie on Jun 15, 2024
Verified
A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2.Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2.Calculate its cash flow on total assets ratio for both years.Comment on the results.
Net Operating Cash Flow
The amount of cash generated by a company's regular business operations over a specific period.
- Understand the procedure for determining the cash flow on total assets ratio.
Verified Answer
AC
Learning Objectives
- Understand the procedure for determining the cash flow on total assets ratio.
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