Exercise 12-7B (a) E12-7B. Cash Flow Ratios Morris Company reports the following amounts in its annual financial statements: LC Cash flow from operating activities...... Cash flow from investing activities Cash flow from financing activities. Net income... $75,000 (60,000) (8,500) 37.500 Capital expenditures........... $ 47,500 Average current assets........ 150,000 Average current liabilities.... 90,000 Total assets ......... .... 225,000 *This amount is a cash outflow. a. Compute Morris's free cash flow. b. Compute Morris's operating-cash-flow-to-current-liabilities radio. c. Compute Morris's operating-cash-flow-to-capital-expenditures ratio