If net cash flows from operating activities were $187,000, net income were $50,000, and net sales...

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Accounting

If net cash flows from operating activities were$187,000, net income were $50,000, and net sales were $600,000, thecash flow yield would equal (Round to on decimalplace)

a.$137,000               

b.$237,000

c.3.7times

d. $413,000

Answer & Explanation Solved by verified expert
3.8 Ratings (554 Votes)

Correct Answer (C ) 3.7 Times.

Explanation

Cash flow yield is calculated by dividing net cash from operation with net profit.

Cash flow Yield                                  Net Cash flow from Operating Activities

                                                                Operating Income          

Cash flow Yield                                  $ 187000/$ 50000

Cash flow Yield                                  3.7 times


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