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%.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

End-of-Month Inventory

The valuation of all unsold goods, raw materials, and work-in-progress held by a company at the end of the month.

Sales Data

Information related to the quantity sold, revenue generated, and patterns of sales within a specific period.

Production Budget

A plan that outlines the expected production volume, based on sales forecasts and inventory policies.