Cash Flow Ratios
Following are data from the financial statements for Houma Company.
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Houma Company |
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Selected Financial Statement Data |
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For the Years Ended December 31, 2008 and 2007 |
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2008 |
2007 |
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Net income |
$34,000 |
$ 65,200 |
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Cash from operating activities |
28,900 |
158,130 |
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Cash paid for purchase of fixed assets |
42,000 |
156,000 |
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Cash paid for interest |
26,000 |
24,000 |
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Cash paid for income taxes |
15,000 |
25,670 |
Compute the following for both 2007 and 2008:
1. Cash flow to net income ratio
2. Cash flow adequacy ratio
3. Cash times interest earned ratio