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jarptica [38.1K]
4 years ago
7

A company reports the amounts below in its financial statements. Net cash flow from operating activities $37,570 Total net cash

flow 73,440 Current liabilities beginning of year 38,400 Current liabilities end of year 43,200 What is the company's operating cash flows to current liabilities ratio at the end of the year? (A) 0.92 (B) 0.85 (C) 1.80 (D) 1.70 (E) None of the above
Business
1 answer:
balandron [24]4 years ago
3 0

Answer:

Ratio will be 0.92

So option (A) will be the correct option

Explanation:

We have given net cash flow from operating activities = $37570

So net operating cash flow = $37570

Current liabilities at the bugging of the year = $38400

Current liabilities at the end of the year = $43200

So average current liabilities =\frac{38400+43200}{2}=$40800

We have to find the ratio of operating cash flow to current liabilities

So ratio will be =\frac{37570}{40800}=0.92

So option (A) will be the correct option

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