Morgan Company reports the following amounts in its annual financial statements: Cash flow from operating activities...
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Morgan Company reports the following amounts in its annual financial statements: Cash flow from operating activities $65,000 Capital expenditures $52,500* Cash flow from investing activities (60,000) Average current assets 130,000 Cash flow from financing activities (8,500) Average current liabilities 90,000 Net income 37,500 Total assets 225,000 * This amount is a cash outflow a. Compute Morgan's free cash flow. b. Compute Morgan's operating-cash-flow-to-current-liabilities ratio. c. Compute Morgan's operating-cash-flow-to-capital-expenditures ratio. Round ratios to two decimal points. a. Free cash flow b. Operating-cash-filow-to-current-liabilities ratio c. Operating-cash-flow-to-current-expenditures ratio Morgan Company reports the following amounts in its annual financial statements: Cash flow from operating activities $65,000 Capital expenditures $52,500* Cash flow from investing activities (60,000) Average current assets 130,000 Cash flow from financing activities (8,500) Average current liabilities 90,000 Net income 37,500 Total assets 225,000 * This amount is a cash outflow a. Compute Morgan's free cash flow. b. Compute Morgan's operating-cash-flow-to-current-liabilities ratio. c. Compute Morgan's operating-cash-flow-to-capital-expenditures ratio. Round ratios to two decimal points. a. Free cash flow b. Operating-cash-filow-to-current-liabilities ratio c. Operating-cash-flow-to-current-expenditures ratio
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Req a Free cash flows Cashflows from operating activities Deduct Capital eexpendi... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
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