The Following Are Totals from Selected Financial Statements of Macy

question 98

Essay

The following are totals from selected financial statements of Macy May Company for the years ended December 31, 2013, 2014 and 2015:


Required:
1) Compute the operating cash flow ratio for the year ended 2014 and 2015.
2) Compute the operating cash flow to total liabilities ration for the year ended 2014, and 2015.

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Definitions:

Budgeting Formulas

Mathematical expressions used to estimate and plan future financial operations and performance.

Net Operating Income

The profit generated from a company's everyday business operations, excluding taxes and interest.

Units

In the context of manufacturing and accounting, it refers to the individual items or quantities produced by a company.

Planning Budget

A budget created for a specific period in the future which is used for planning purposes, reflecting the strategic objectives of an organization.