Question
Morgan Company reports the following amounts in its annual financial statements: Cash flow from operating activities $65,000 Capital expenditures Cash flow from investing activities
Morgan Company reports the following amounts in its annual financial statements: Cash flow from operating activities $65,000 Capital expenditures Cash flow from investing activities (60,000) Average current assets (7,500) Average current liabilities 37,500 Total assets Cash flow from financing activities Net income *This amount is a cash outflow a. Compute Morgan's free cash flow. $52,500* 120,000 90,000 225,000 b. Compute Morgan's operating-cash-flow-to-current-liabilities ratio. c. Compute Morgan'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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Understanding Financial Accounting
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
1st Canadian Edition
1118849388, 9781119048572, 978-1118849385
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