A Company Had Net Cash Flows from Operations of $120,000

question 148

Multiple Choice

A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:

• A) 4.8%.
• B) 5.0%.
• C) 20.0%.
• D) 20.8%.
• E) 24.0%.

---

Definitions:

Authority To Make Contracts

The legal capability or power granted to a person or entity to enter into binding agreements or contracts.

Audit

An official inspection of an individual's or organization's accounts, typically by an independent body, to verify their accuracy.

Trading Partnership

A Trading Partnership is a legal arrangement where two or more parties agree to conduct business activities together for profit, typically involving the buying and selling of goods or services.

Cash Flow Problems

Financial challenges faced by a business when it does not have enough cash on hand to cover its obligations.