Calculate the Cash Flow to Sales Ratio Using the Following

question 36

Multiple Choice

Calculate the cash flow to sales ratio using the following data.
$\begin{array}{|l|r|}\hline \text{Sales revenue} & \$ 650000 \\\hline \text{Ending cash balance for the period} & 22500 \\\hline \text{Net cash inflow from operating activities} & 84000 \\\hline\end{array}$

• A) 3.46%
• B) 7.74%
• C) 9.46%
• D) 12.92%

Understand the concept and implications of rent-seeking behavior and its impact on resource allocation.

Identify the most likely beneficiaries of government income transfers under a system of representative democracy.

Grasp the reasons why private production tends to be more efficient than government production.

Recognize the biased nature of government decisions towards actions with observable short-term benefits at the expense of long-term costs.

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Definitions:

Aggregate Supply

The aggregate amount of products and services that companies in an economy are prepared and able to offer at a specific general price level during a certain time frame.

Natural Rate

Refers to the equilibrium rate of unemployment or interest where the economy is stable, without accelerating inflation.

Unemployment

The situation in which individuals who are capable of working and actively seeking work are unable to find employment.

Aggregate Supply

The complete range of goods and services that enterprises in an economy are prepared to sell over a predetermined period.