If Net Cash Flows from Operating Activities Were $316,000,net Income

question 23

Multiple Choice

If net cash flows from operating activities were $316,000,net income were $200,000,and sales were $2,000,000,cash flows to sales would equal (Round amounts to one decimal place)

• A) 10.0 percent.
• B) $116,000.
• C) 15.8 percent.
• D) 0.6 times.

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Definitions:

Expected Rate of Return

The anticipated return on an investment over a specific period, taking into account both the risk of the investment and historical performance trends.

Operating Income

This refers to the profit a company generates from its normal business operations, excluding any income from investments or non-recurring expenses.

Other Postretirement Benefit Expense

Expenses associated with retirement benefits other than pensions, such as healthcare benefits, recognized during the period employees receive the benefits.

Service Cost

In accounting, refers to the expense recognized for employees' future retirement benefits earned during the current period.