Safety of Cash Flows When you review your results in E13-34, you realize that you should have looked at the safety of cash flows, also. You request and receive the following additional data so you can calculate additional ratios:

Required:

a. Calculate the ratio of dividends to operating cash flow, cash flow to maturing debt, and cash flow to total debt.

b. What additional information is provided by these ratios?

c. What is your evaluation of Mori Company? Does the company appear to be in a strong position or to be headed for future difficulties in meeting its cash flow commitments? Explain.

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Cash dividends per share of common stock for 2001 Current maturities of long-term debt Total current liabilities Total long-term debt $ 2.00 150,000 600,000 1,800,000