Question

A company had net cash flows from operations of $130,000, cash flows from financing of $350,000, total cash flows of $530,000, and average total assets of $3,100,000. The cash flow on total assets ratio equals:

17.3%

24.5%

17.1%

4.4%

4.2%

n preparing a company's statement of cash flows for the most recent year, the following information is available:

Loss on the sale of equipment	$	15,600
Purchase of equipment		161,000
Proceeds from the sale of equipment		142,000
Repayment of outstanding bonds		95,000
Purchase of treasury stock		70,000
Issuance of common stock		104,000
Purchase of land		131,000
Increase in accounts receivable during the year		51,000
Decrease in accounts payable during the year		83,000
Payment of cash dividends		43,000

Net cash flows from investing activities for the year were:

134400 of net used

245000 of net cash povided

150000 of net cash provided

284000 net cash used

150000 of net cash used

Answer 1

Answer- The cash flow on total assets ratio = 4.2%.

Explanation- Cash flow on total assets ratio = (Net cash flows from operations/Average total assets)*100

= ($130000/$3100000)*100

= 4.2%

Answer- Net cash flows from investing activities for the year were = 150000 of net cash used.

Explanation-

Cash Flow from Investing activities
Purchase of equipment		-161000
Proceeds from sale of equipment		142000
Purchase of land		-131000
Net cash Flow used from Investing activities		-150000