Cash Flow on Total Assets: It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost . 1. Cash flow on total assets ratio.

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Answer 1

Question

Chapter 12, Problem 2BTN

To determine

Cash Flow on Total Assets:

It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

1.

Cash flow on total assets ratio.

2.

To determine

To identity: Purpose of cash flow on total assets ratio.

3.

To determine

To identify: Highest cash flow on total ratio.

4.

To determine

To identify: Whether the cash flow on total assets reflect the earnings quality.

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What is its operating return on Assets?

Orion Manufacturing has annual fixed costs of $180,000 and variable costs of $4 per unit. Each unit of product is sold for $22. Orion expects to sell 20,000 units this year. How many units must be sold to earn an annual profit of $90,000?

Answer 2

Question

Chapter 12, Problem 2BTN

To determine

Cash Flow on Total Assets:

It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

1.

Cash flow on total assets ratio.

2.

To determine

To identity: Purpose of cash flow on total assets ratio.

3.

To determine

To identify: Highest cash flow on total ratio.

4.

To determine

To identify: Whether the cash flow on total assets reflect the earnings quality.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 2BTN

To determine

Cash Flow on Total Assets:

It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

1.

Cash flow on total assets ratio.

2.

To determine

To identity: Purpose of cash flow on total assets ratio.

3.

To determine

To identify: Highest cash flow on total ratio.

4.

To determine

To identify: Whether the cash flow on total assets reflect the earnings quality.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 2BTN

To determine

Cash Flow on Total Assets:

It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

1.

Cash flow on total assets ratio.

2.

To determine

To identity: Purpose of cash flow on total assets ratio.

3.

To determine

To identify: Highest cash flow on total ratio.

4.

To determine

To identify: Whether the cash flow on total assets reflect the earnings quality.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 2BTN

To determine

Cash Flow on Total Assets:

It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

1.

Cash flow on total assets ratio.

2.

To determine

To identity: Purpose of cash flow on total assets ratio.

3.

To determine

To identify: Highest cash flow on total ratio.

4.

To determine

To identify: Whether the cash flow on total assets reflect the earnings quality.

Answer 6

Chapter 12, Problem 2BTN

To determine

Cash Flow on Total Assets:

It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

1.

Cash flow on total assets ratio.

Answer 7

Chapter 12, Problem 2BTN

To determine

Cash Flow on Total Assets:

It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to average total cost.

1.

Cash flow on total assets ratio.

Answer 8

2.

To determine

To identity: Purpose of cash flow on total assets ratio.

Answer 9

2.

To determine

To identity: Purpose of cash flow on total assets ratio.

Answer 10

3.

To determine

To identify: Highest cash flow on total ratio.

Answer 11

3.

To determine

To identify: Highest cash flow on total ratio.

Answer 12

4.

To determine

To identify: Whether the cash flow on total assets reflect the earnings quality.

Answer 13

4.

To determine

To identify: Whether the cash flow on total assets reflect the earnings quality.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 12 - Prob. 1MCQ Ch. 12 - Prob. 2MCQ Ch. 12 - Prob. 3MCQ Ch. 12 - Prob. 4MCQ Ch. 12 - Prob. 5MCQ Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ

Solution Summary: The author explains the cash flow on total assets ratio, which can be calculated by dividing cash flows operation to average total cost.

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To identity: Purpose of cash flow on total assets ratio.

To identify: Highest cash flow on total ratio.

To identify: Whether the cash flow on total assets reflect the earnings quality.

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Chapter 12 Solutions