If Net Cash Flows from Operating Activities Were $374,000,net Income

question 120

Multiple Choice

If net cash flows from operating activities were $374,000,net income were $100,000,and net sales were $1,200,000,the cash flow yield would equal (Round amounts to one decimal place)

• A) 3.2 times.
• B) 26.7%
• C) 3.7 times.
• D) 31.2%

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Definitions:

Days' Sales

A measure often used in the context of 'Days' Sales in Inventory' which indicates the average number of days it takes for a company to sell its inventory.

Raw Materials Inventory

Consists of the basic materials and components required to manufacture goods.

Production

The process of creating, manufacturing, or enhancing products or services for sale.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency in managing stock levels.