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A Company Reported Operating Cash Flows in Year 1 of $23,400

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Essay

A company reported operating cash flows in Year 1 of $23,400 and $26,220 in Year 2. Its average total assets in Year 1 were $262,000 and $285,000 in Year 2. Calculate the cash flow on total assets ratio for both years. Comment on the results.


Definitions:

Instrumental Stage

A developmental phase where an individual learns to engage in activities or behaviors for the sake of achieving a goal or obtaining a reward.

Moral Development

The process by which individuals learn to differentiate right from wrong, acquire virtues, and make ethical decisions as they grow and mature.

Defer

To postpone or delay an action or decision to a later time.

Moral Intelligence

The capacity to understand principles of right and wrong and to behave according to these principles, leading to ethical decision making.

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