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Cash Flow Ratios Spencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $85,000 Capital expenditures $56,000* Cash flow
Cash Flow Ratios Spencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $85,000 Capital expenditures $56,000* Cash flow from investing activities (64,000) Average current assets 128,000 Cash flow from financing activities (8,000) Average current liabilities 96,000 Net income 40,000 Total assets 240,000 * This amount is a cash outflow a. Compute Spencer's free cash flow. b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio. C. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio. Round ratios to two decimal points. $ a. Free cash flow b. Operating-cash-flow-to-current-liabilities ratio c. Operating-cash-flow-to-current-expenditures ratio
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