A Company Had Average Total Assets of $3,216,000,total Cash Flows

question 125

Multiple Choice

A company had average total assets of $3,216,000,total cash flows of $1,320,000,cash flows from operations of $554,000,and cash flows for plant assets of $850,000.The cash flow on total assets ratio equals:

• A)41.04%.
• B)41.97%.
• C)26.43%.
• D)17.23%.
• E)64.39%.

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Definitions:

Break-even Level

The point at which total costs and total revenue are equal, resulting in no net loss or gain from business operations.

Earnings per Share

The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's financial health.

Repurchase Shares

The act of a company buying back its own shares from the marketplace, reducing the number of outstanding shares.

Break-even Level

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.