In: Accounting
If net cash flows from operating activities were $187,000, net income were $50,000, and net sales were $600,000, the cash flow yield would equal (Round to on decimal place)
a.$137,000
b.$237,000
c.3.7 times
d. $413,000
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