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Rashid [163]
3 years ago
14

If the free cash flow is $60,000, sales are $200,000, and net income is $100,000, the ratio of free cash flow to sales is a.30%.

b.60%. c.The ratio cannot be calculated from this information because cash used to purchase property, plant, and equipment is not given. d.333%.
Business
1 answer:
Darina [25.2K]3 years ago
6 0

Answer:

30%

Explanation:

The ratio of free cash flow to sales can be calculated by dividing the free cash flow by the sales amount as follows:

Ratio of free cash flow to sales = $60,000 ÷ $200,000 = 0.30, or 30%.

Therefore, the  ratio of free cash flow to sales is 30%.

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