31.10.2020

Cash flow on total assets ratio

. 4

Faq

Business
Step-by-step answer
P Answered by PhD

Cash flow on total assets ratio = 1.67% (Approx)

Explanation:

Given:

Cash flows from operations = $123,000

Cash flows from financing = $336,000

Total cash flows = $503,000

Average total assets = $7,350,000

Find:

Cash flow on total assets ratio

Computation:

Cash flow on total assets ratio = [Cash flows from operations / Average total assets]100

Cash flow on total assets ratio = [$123,000 / $7,350,000]100

Cash flow on total assets ratio = 1.67% (Approx)

Business
Step-by-step answer
P Answered by PhD

Cash flow on total assets ratio = 1.67% (Approx)

Explanation:

Given:

Cash flows from operations = $123,000

Cash flows from financing = $336,000

Total cash flows = $503,000

Average total assets = $7,350,000

Find:

Cash flow on total assets ratio

Computation:

Cash flow on total assets ratio = [Cash flows from operations / Average total assets]100

Cash flow on total assets ratio = [$123,000 / $7,350,000]100

Cash flow on total assets ratio = 1.67% (Approx)

Business
Step-by-step answer
P Answered by PhD

0.496

Explanation:

The following can be deduced from the question:

Net Income = 99,510

Depreciation and Amortization = 58,600

Gain on the sale of equipment = -2,000

The increase in Accounts Receivables will be: 51000-65000 = -14,000

Decrease in Inventory = 86500-63800 = 22,700

Decrease in Prepaid Expense = 5400 - 4400 = 1,000

Decrease in Accounts Payable = 25000 - 30000 = -5,000

The decrease in inome tax payable = 3400 - 3800 = -400

The decrease in wages payable =6000-15000 = -9,000

Cash Flows from the operating activities = 151,410

Note that the cash flow is the addition of all the values above

Average Total Assets will be the addition of the beginning balance and the ending balance which is then divided by 2. This will be:

= (292900+317700) ÷ 2

= $620600/2

= $305300

The company's cash Flow on the total assets ratio for the fiscal year will be:

= cash from the operations ÷ average total assets

= 151410 ÷ 305300

= 0.496

Business
Step-by-step answer
P Answered by PhD

0.496

Explanation:

The following can be deduced from the question:

Net Income = 99,510

Depreciation and Amortization = 58,600

Gain on the sale of equipment = -2,000

The increase in Accounts Receivables will be: 51000-65000 = -14,000

Decrease in Inventory = 86500-63800 = 22,700

Decrease in Prepaid Expense = 5400 - 4400 = 1,000

Decrease in Accounts Payable = 25000 - 30000 = -5,000

The decrease in inome tax payable = 3400 - 3800 = -400

The decrease in wages payable =6000-15000 = -9,000

Cash Flows from the operating activities = 151,410

Note that the cash flow is the addition of all the values above

Average Total Assets will be the addition of the beginning balance and the ending balance which is then divided by 2. This will be:

= (292900+317700) ÷ 2

= $620600/2

= $305300

The company's cash Flow on the total assets ratio for the fiscal year will be:

= cash from the operations ÷ average total assets

= 151410 ÷ 305300

= 0.496

Business
Step-by-step answer
P Answered by PhD

28.57%

Explanation:

The computation of the cash flow on total assets equal to

= Cash flow from operations ÷ average total asset

where,

Cash flow from operations = $20,000

Average total asset is

= (Beginning total assets + ending total assets) ÷ 2

= ($75,000 + $65,000) ÷ 2

= $70,000

So, Cash flow on total assets for 2018 is

= $20,000 ÷ $70,000

= 28.57%

Business
Step-by-step answer
P Answered by PhD

28.57%

Explanation:

The computation of the cash flow on total assets equal to

= Cash flow from operations ÷ average total asset

where,

Cash flow from operations = $20,000

Average total asset is

= (Beginning total assets + ending total assets) ÷ 2

= ($75,000 + $65,000) ÷ 2

= $70,000

So, Cash flow on total assets for 2018 is

= $20,000 ÷ $70,000

= 28.57%

Business
Step-by-step answer
P Answered by Master

The cash flow statement guides a company in understanding its true use and source of cash funding.

It helps breakdown the Net income and give confidence or allow an analyst/investor heighten his risk profile of the business returns on Invested funds.

The attached documents show details of the full questions which are missing from the submitted question and the Cash flow statement .


Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exc
Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exc
Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exc
Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exc
Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exc
Business
Step-by-step answer
P Answered by PhD

18.43%

Explanation:

Based on the information given, the cash flow on total assets ratio will be calculated as:

= (net cash flows from operations / average total asset) × 100

= ($341,000 / $1850000) × 100

= 18.43%

Therefore, the answer to the question is 18.43%

Advanced Placement (AP)
Step-by-step answer
P Answered by PhD
The correct option is C.
Depreciation is the most common example of an operating expense that does not affect cash. Because of this, when using indirect method of calculating cash flow, depreciation expenses have to be added back to the net income.
Business
Step-by-step answer
P Answered by PhD

18.43%

Explanation:

Based on the information given, the cash flow on total assets ratio will be calculated as:

= (net cash flows from operations / average total asset) × 100

= ($341,000 / $1850000) × 100

= 18.43%

Therefore, the answer to the question is 18.43%

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