Answer:
option a. 8.3%
Explanation:
Data provided in the question:
Sales = $3,500,000
Net cash flow from operating activities = $350,000
Net cash flow used for investing activities = $100,000
Net cash flow used for financing activities = $200,000
Free cash flow = $290,000
Now,
The Free Cash Flow to Sales Ratio = [ Free Cash Flow ÷ Sales ] × 100
%
= [ $290,000 ÷ $3,500,000 ] × 100
%
= 8.3%
Hence,
The correct answer is option a. 8.3%
