Using the following information, compute the following ratios: (1) Cash flow-to-net income, (2) Cash flow adequacy, and
Question:
(1) Cash flow-to-net income,
(2) Cash flow adequacy, and
(3) Cash times interest earned.
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000
Cash flow from operating activities . . . . . . . . . . . . . . 14,000
Cash paid for capital expenditures . . . . . . . . . . . . . . . 25,000
Cash paid for acquisitions . . . . . . . . . . . . . . . . . . . . . 15,000
Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . 5,500
Cash paid for income taxes . . . . . . . . . . . . . . . . . . . . 7,500
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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