Computing Cash Flow Ratios
Using the following information, compute the following ratios: (1) cash flow to net income, (2) cash flow adequacy, and (3) cash times interest earned.
Net income |
$10,000 |
Cash flow from operating activities |
14,000 |
Cash paid for capital expenditures |
25,000 |
Cash paid for acquisitions |
15,000 |
Cash paid for interest |
5,500 |
Cash paid for income taxes |
7,500 |