Asked by Jessica Biddle on Jul 22, 2024
Verified
A company reported net income of $318,000,operating cash flows of $218,000,total cash flows of $184,000,and average total assets of $898,000.Calculate its cash flow on total assets ratio.
Total Assets Ratio
A financial metric that measures the efficiency of a company's use of its assets to generate revenue.
Net Income
The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the financial performance over a given period.
- Gain proficiency in evaluating the cash flow on total assets ratio.
Verified Answer
WF
Wanda FernandezJul 22, 2024
Final Answer :
Cash Flow on Total Assets = Operating Cash Flows/Average Total Assets
Cash Flow on Total Assets = $218,000/$898,000 = 24.3%
Cash Flow on Total Assets = $218,000/$898,000 = 24.3%
Learning Objectives
- Gain proficiency in evaluating the cash flow on total assets ratio.