The following shows excerpts from financial infomation relating to Stanwell Company and Thodes Company.   Stanwell Thodes Net cash flows operating activities 138,000 115,000 total assets  272,000 35,0000 net income 35,000 32,000 sales revenue 385,000 250,000 capital expenditures 28,000 60,000 dividend payments 17,000 13,000 compute the following for both companies. compare your results.       A. free cash flow       B. Cash flows to sales ratio       C. Cash flows to assets ratio

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 10MCQ
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PB12. LO 16.5 The following shows excerpts from financial infomation relating to Stanwell Company and Thodes Company.

  Stanwell Thodes
Net cash flows operating activities 138,000 115,000
total assets  272,000 35,0000
net income 35,000 32,000
sales revenue 385,000 250,000
capital expenditures 28,000 60,000
dividend payments 17,000 13,000

compute the following for both companies. compare your results.

      A. free cash flow

      B. Cash flows to sales ratio

      C. Cash flows to assets ratio

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