Chapter 16, Problem 10E

To determine

Cash Flow to Total assets ratio:

Cash flow from operating activities to total assets is a ratio which determine the efficiency of the company to generate the cash flows from operating activities by employing the total assets in the business. The higher is the ratio, more efficient is the company in generating the cash flows. In other words, it could be said that the higher the ratio, lesser amount of assets is required to generate the same amount of cash inflows. This is computed by dividing the cash inflows by the average total assets employed during the year.

To Determine: The cash flows to total assets ratio shall be computed.