A Company Had Average Total Assets of $1,660,000,total Cash Flows

question 96

Multiple Choice

A company had average total assets of $1,660,000,total cash flows of $1,320,000,cash flows from operations of $205,000,and cash flows from financing of $750,000.The cash flow on total assets ratio equals:

• A)45.2%.
• B)22.0%.
• C)11.65%.
• D)12.3%.
• E)79.5%.

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Definitions:

Control

In an experiment or study, the standard to which comparisons are made; in management, the process of directing and regulating processes, systems, or organizations.

Net Investment

The aggregate investment in new capital assets less the depreciation charges on the current capital assets.

Gross Investment

The total amount spent on purchases of new capital and on replacing depreciated capital within an economy during a specific period.

Depreciation

The process by which the value of an asset decreases over time, often due to wear and tear or obsolescence.