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A Company Reported Operating Cash Flows of $23,400 in 2012

question 68

Essay

A company reported operating cash flows of $23,400 in 2012 and $26,220 in 2013.The average total assets for the company in 2012 was $262,000 and $285,000 in 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.


Definitions:

Feasibility Analysis

An assessment of the practicality and potential success of a proposed business idea or project.

Maximum Daily Production

The highest quantity of goods or services a company can produce in a single day under normal operating conditions.

Managerial Accounting

The phase of accounting concerned with providing information to managers for use within the organization.

Historical Perspective

An approach to understanding and analyzing events or subjects based on their development over time.

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