Use the following income statement and information about changes in noncash current assets and liabilities to (1) prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method and (2) compute the company's cash flow on total assets ratio for the year assuming that average total assets are $525,250.
Changes in current asset and current liability accounts for the year that relate to operations follow.
Definitions:
Price Differential
The variation in the price of a product or service in different markets or purchase conditions.
Rational Decision Maker
An individual who makes choices based on reasoning and the systematic evaluation of options to achieve the most beneficial outcome.
Business Trip
A journey taken for work or professional purposes, often involving travel outside of the usual workplace.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision or choosing to undertake an action.
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