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Cash Flow Ratios Spencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $50,000 Capital expenditures* $35,000 Cash flow
Cash Flow Ratios
Spencer Company reports the following amounts in its annual financial statements:
Cash flow from operating activities | $50,000 | Capital expenditures* | $35,000 | ||
Cash flow from investing activities | (40,000) | Average current assets | 80,000 | ||
Cash flow from financing activities | (5,000) | Average current liabilities | 60,000 | ||
Net income | 25,000 | Total assets | 150,000 | ||
* This amount is a cash outflow |
a. Compute Spencers free cash flow. $Answer b. Compute Spencers operating-cash-flow-to-current-liabilities ratio. Answer c. Compute Spencers operating-cash-flow-to-capital-expenditures ratio. Answer (Round ratios to two decimal places.)
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