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2011年8月3日星期三

Help!! Managerial accounting on cash flows using cash flow adequacy ratio?

-Cash flow from operating activities- $275,000

Cash flow from financing activities- $75,000

Cash flow from investing activities- $25,000

Interest- $10,000

Taxes-$8,000

Capital expenditures- $15,000

Average amount of debt maturing over the next five years- $150,000



What is the cash flow adequacy ratio?



A. 0.500

B. 0.947

C. 1.056

D. 1.613Cash Flow Adequacy Ratio = (Cash Flow from Operations) / ( Long-term debt paid + Fixed assets purchased + Cash dividends distributed)



I'm coming up with 1.67

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