Concept introduction:
This ratio shows relationship between cash flow from operating activities and average total assets of a firm. This ratio tells that how much cash flow from operations is generated in compare to average total assets.
Requirement 1:
Ranking three companies on the basis of cash from operaing activities.
Concept introduction:
Cash flow on total assets ratio:
This ratio shows relationship between cash flow from operating activities and average total assets of a firm. This ratio tells that how much cash flow from operations is generated in compare to average total assets.
Requirement 2:
To explain:
Which company has the largest
Concept introduction:
Cash flow on total assets ratio:
This ratio shows relationship between cash flow from operating activities and average total assets of a firm. This ratio tells that how much cash flow from operations is generated in compare to average total assets.
Requirement 3:
To explain:
Which company has the largest
Concept introduction:
Cash flow on total assets ratio:
This ratio shows relationship between cash flow from operating activities and average total assets of a firm. This ratio tells that how much cash flow from operations is generated in compare to average total assets.
Requirement 4:
To explain:
Which company has the highest cash flow on total assets ratio?
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Managerial Accounting (Looseleaf)
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- Use the following excerpts from Nutmeg Companys financial records to determine net cash flows from operating activities and net cash flows from investing activities.arrow_forwardWhat are two ways to report a companys net cash flow from operating activities? Briefly describe each method.arrow_forwardIn which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. purchased stock in Xerox Corporation B. purchased office supplies C. issued common stock D. sold plant assets for cash E. sold equipment for casharrow_forward
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