For 20x5,Devers Enterprises Had Average Total Assets of $1,040,000,sales of $900,000,net

question 68

Essay

For 20x5,Devers Enterprises had average total assets of $1,040,000,sales of $900,000,net income of $100,000,net cash flows from operating activities of $150,000,dividend payments of $50,000,purchases of plant assets of $120,000,and sales of plant assets of $110,000.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:

Dividends Payable

liabilities representing the amount of dividends declared by a company's board but not yet paid to shareholders.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been received but not yet paid for.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash transactions happen.

Cash Basis

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.