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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 $52,500* 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 $52,500* Cash flow from investing activities (60,000) Average current assets 120,000 Cash flow from financing activities (7,500) Average current liabilities 90,000 Net income 37,500 Total assets 225,000 * This amount is a cash outflow a. Compute Spencer's free cash flow. b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio
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