A company reports the amounts below in its financial statements.Net cash flow from operating activities$37,570Total net cash flow73,440Current liabilities beginning of year42,240Current liabilities end of year47,520What is the company's operating cash flows to current liabilities ratio at the end of the year?Select one:a. 1.64b. None of these are correctc. 0.79d. 1.55e. 0.84

Ratio analysis means where different ratio of various years of years companies has been compared and results are interpreted to make effective decision regarding future course of action. CALCULATION OF OPERATING CASH FLOW TO CURRENT LIABILITIES AT THE END Operating cash flow to current liability ratio = Net cash flow from operating activities / Current liability Operating cash flow to current liability ratio = 37570 / 47520 Operating cash flow to current liability ratio = 0.79 Hence ,the right answer is OPTION C , 0.79.

Answered: A company reports the amounts below in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company reports the amounts below in its financial statements.

Net cash flow from operating activities	$37,570
Total net cash flow	73,440
Current liabilities beginning of year	42,240
Current liabilities end of year	47,520

What is the company's operating cash flows to current liabilities ratio at the end of the year?

Select one:

a. 1.64

b. None of these are correct

c. 0.79

d. 1.55

e. 0.84

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