Your firm has net income of $245 on total sales of $1,080. Costs are $610 and depreciation is $120. The tax rate is 25 percent. The firm does not have interest expenses. What is the operating cash flow? Multiple Choice O O O $421 $249 $383 $306

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.