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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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