Question
A company reported average total assets of $249,000 in Year 1 and $298,000 in Year 2. Its net operating cash flow was $19,875 in Year
A company reported average total assets of $249,000 in Year 1 and $298,000 in Year 2. Its net operating cash flow was $19,875 in Year 1 and $31,250 in Year 2.
(1) Calculate its cash flow on total assets ratio for both years.
(2) Did its cash flow on total assets improve in Year 2 versus Year 1?
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Cornerstones of Managerial Accounting
Authors: Mowen, Hansen, Heitger
3rd Edition
324660138, 978-0324660135
