FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Based on the following, what is the free cash flow and the cash flow adequacy ratio? (Round the ratio to one decimal place.)
Net cash flows from operating activities
Net cash flows used for investing activities
Net cash flows used for financing activities
Average amount of debt maturing over the next five years
Of the net cash flows used for investing activities, 80% was for the purchase of property, plant, and equipment. Cash flows from (used for)
financing activities include $70,000 of borrowing.
Free cash flow:
Cash flow adequacy ratio:
$243,000
%
$318,000
(125,000)
(30,000)
150,000
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Transcribed Image Text:Based on the following, what is the free cash flow and the cash flow adequacy ratio? (Round the ratio to one decimal place.) Net cash flows from operating activities Net cash flows used for investing activities Net cash flows used for financing activities Average amount of debt maturing over the next five years Of the net cash flows used for investing activities, 80% was for the purchase of property, plant, and equipment. Cash flows from (used for) financing activities include $70,000 of borrowing. Free cash flow: Cash flow adequacy ratio: $243,000 % $318,000 (125,000) (30,000) 150,000
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