For 20xx,Black & White Corporation Had Average Total Assets of $300,000,net

question 53

Essay

For 20xx,Black & White Corporation had average total assets of $300,000,net sales of $250,000,net income of $20,000,net cash flows from operating activities of $30,000,dividend payments of $15,000,purchases of plant assets of $70,000,and sales of plant assets of $30,000.Using this information,compute (a)cash flow yield,(b)cash flows to sales,(c)cash flows to assets,and (d)free cash flow.Round amounts to one decimal place.

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Definitions:

After-tax Gain

The profit remaining after all taxes have been deducted.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its acquisition cost without reflecting changes in its market value.

Consolidated Income Statement

A financial statement that summarizes the financial performance of a company and its subsidiaries.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the efficiency of core operations.