Cash flow on total assets is an efficiency ratio that rates actual cash flows to the company assets without being affected by income recognition or income measurements. The cash flow on total assets ratio is calculated by dividing cash flows from operations by the average total assets. To compute: The cash flow on total assets.

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Chapter 12, Problem 20QS

1.

To determine

Introduction: Cash flow on total assets is an efficiency ratio that rates actual cash flows to the company assets without being affected by income recognition or income measurements. The cash flow on total assets ratio is calculated by dividing cash flows from operations by the average total assets.

To compute: The cash flow on total assets.

2.

To determine

Introduction: Cash flow on total assets is an efficiency ratio that rates actual cash flows to the company assets without being affected by income recognition or income measurements. The cash flow on total assets ratio is calculated by dividing cash flows from operations by the average total assets.

To explain: The comparison between two competitors.

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