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 ( O p e n i n g Total Assets + Closing Total Assets ) 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

Question

Want to see the full answer?

Answer 1

Question

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

(Opening Total Assets + Closing Total Assets)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

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

! Required information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2022 07/22/2022 08/17/2022 During 2022, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2023 to increase its production capacity. These are the assets acquired during 2023: Date Placed in Service 03/31/2023 Asset Computers and information system Cost $ 400,000 Luxury auto* Assembly equipment Storage building 80,000 1,200,000 700,000 05/26/2023 08/15/2023 11/13/2023 *Used 100% for business purposes. Karane generated taxable income in 2023 of $1,732,500 for…

Question-38

Please given answer accounting question