Chapter 16, Problem 10E

To determine

Concept Introduction:

Cash Flow from Operating Activities:

Cash flow from operating activities includes the inflow from principal revenue generating activities of enterprise. In other words inflow from activities that are not financing and investing activities.

Total Assets:

Total Assets includes the Non-Current Assets and Current Assets of an enterprises.

Average Total Assets:

Average total assets can be calculated by using the formula mentioned below

  $\frac{\left(Opening\text{ Total Assets }+\text{ Closing Total Assets}\right)}{2}$

Current Assets:

Current Assets are the assets that are either in the form of Cash & Cash Equivalents or can be converted into Cash or Cash Equivalent within a short period of time i.e. 12 months.

Non-Current Assets:

Non-Current Assets are those assets which are not current assets. It includes Fixed Assets (Tangible and intangible), Long term Investments, Long term loans and advances and other non-current assets.

Cash Flow on Total Assets Ratio:

It is an efficiency ratio used to calculate the efficiency of Assets to generate cash flows.

To Calculate:

The Cash Flow to Total Assets Ratio of Company for Fiscal Year 2015 and 2014