71. The cash flow on total assets ratio is calculated by:
A. Dividing cash flows from operations by average total assets.
B. Dividing total cash flows by average total assets.
C. Dividing average total assets by cash flows from investing activities.
D. Dividing average total assets by total cash flows.
E. Total cash flows divided by average total assets times 365.
72. A company had net cash flows from operations of $120,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:
A. 4.8%
B. 5.0%
C. 20.0%
D. 20.8%
E. 24.0%
73. A company had total assets of $1,760,000, total cash flows of $1,320,000, and cash flows from operations of $205,000. The cash flow on total assets ratio is equal to:
A. 1.33%
B. 8.58%
C. 11.65%
D. 15.5%
E. 75%
74. A company had total assets of $745,000, total cash flows of $230,000, and cash flows from operations of $50,000. The cash flow on total assets ratio is equal to:
A. 30.87%
B. 21.74%
C. 6.71%
D. 5.13%
E. 37.58%
75. Use the cash flow on total assets ratio to determine which of these three companies is using its assets most efficiently.
|
Company A
|
Company B
|
Company C
|
Cash provided by operations
|
$ 300,000
|
$ 600,000
|
$ 400,000
|
Cash provided (used) by investing activities
|
|
|
|
Purchase of operating assets
|
(190,000)
|
(380,000)
|
(200,000)
|
Cash provided (used) by financing activities
|
|
|
|
Repayment of debt
|
(100,000)
|
(210,000)
|
(190,000)
|
|
|
|
|
Net Increase in cash
|
$ 10,000
|
$ 10,000
|
$ 10,000
|
Average total assets
|
$ 2,500,000
|
$ 6,000,000
|
$ 5,000,000
|
A. Company A.
B. Company B.
C. Company C.
D. As all the companies have the same net increase in cash, they are all equally efficient in the use of their assets.
E. Cannot be determined from the given information.
76. Use the cash flow on total assets ratio to determine which of these three companies is most efficiently using its assets.
|
Company A
|
Company B
|
Company C
|
Cash provided by operations
|
$ 400,000
|
$ 400,000
|
$ 400,000
|
Cash provided (used) by investing activities
|
|
|
|
Purchase of operating assets
|
(90,000)
|
(80,000)
|
(20,000)
|
Cash provided (used) by financing activities
|
|
|
|
Repayment of debt
|
(10,000)
|
(40,000)
|
(30,000)
|
|
|
|
|
Net increase in cash
|
$ 300,000
|
$ 280,000
|
$ 350,000
|
Average total assets
|
$ 4,000,000
|
$ 5,000,000
|
$ 6,000,000
|
A. Company A.
B. Company B.
C. Company C.
D. As all the companies have the same cash from operations, they are all equally efficient in the use of their assets.
E. Cannot be determined from the given information.
77. A company's cash flow on total assets ratio equals 16%. If average total assets equal $2,937,500 and total cash flows equal $600,000, what is the amount of cash flows from operations?
A. $18,359,375
B. $600,000
C. $470,000
D. $96,000
E. $566,000
78. The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:
A. Direct method of reporting net cash provided or used by operating activities.
B. Cash basis of accounting.
C. Classified statement of cash flows.
D. Indirect method of reporting net cash provided or used by operating activities.
E. Net method of reporting cash flows from operating activities.
79. A statement of cash flows should reconcile the differences between the beginning and ending balances of:
A. Net income.
B. Equity.
C. Cash and cash equivalents.
D. Working capital.
E. Cash, cash equivalents and short-term investments.
80. The direct method for the preparation of the operating activities section of the statement of cash flows:
A. Separately lists each major item of operating cash receipts and cash payments.
B. Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement.
C. Reports an amount of cash flows from operations different from the amound determined using the indirect method.
D. Is required if the company is a merchandiser.
E. Is required by the FASB.