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Cash Flow Ratios Spencer Company reports the following amounts in its annual financial statements: Cash flow from operating activities $80,000 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 $80,000 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 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 Answer
b. Operating-cash-flow-to-current-liabilities ratio Answer
c. Operating-cash-flow-to-current-expenditures ratio Answer

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