Taylor Company reports free cash flow of ($15,000,) total cash of ($18,000,) net income of ($50,000,) current

Question:

Taylor Company reports free cash flow of $$15,000,$ total cash of $$18,000,$ net income of $$50,000,$ current assets of $$90,000,$ average current liabilities of $$60,000,$ and cash flow from operating activities of $$48,000.$ Compute the operating-cash-flow-to-current-liabilities ratio for Taylor Company.

a. 0.83

b. 0.80

c. 0.30

d. 1.25

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