Ask Question
5 January, 08:07

Dora Inc. reported the following on the company's cash flow statement: 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 What is the ratio of free cash flow to sales

+5
Answers (1)
  1. 5 January, 08:34
    0
    8.3%

    Explanation:

    Dora Inc. reported a sales of $3,500,000

    The net cash flow from operating activities is $350,000

    The net cash flow used for investing activities is $100,000

    The net cash flow used for financial activities is $200,000

    The free cash flow is $290,000

    Therefore, the free cash flow to sales ratio can be calculated as follows

    Free cash flow to sales ratio = Free cash flow/Sales * 100%

    = $290,000/$3,500,000 * 100

    = 0.0828*100

    = 8.3%

    Hence the ratio of the free cash flow to sales is 8.3%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Dora Inc. reported the following on the company's cash flow statement: Sales $3,500,000 Net cash flow from operating activities 350,000 Net ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers