6Incorrect 000 points out of 100P Rag OperatingCashFlowtoCap

6Incorrect 0.00 points out of 1.00P Rag Operating-Cash-Flow-to-Capital-Expenditures Ratio The following information is from the financial statements of Smith & Sons Cash flow from operating activities Capital expenditures Current liabilities, beginning of year Current liabilitis, end of year $1,300,000 765,000 360,000 432,000 Calculate the operating-cash-flow-to-capital-expenditures ratio for Smith & Sons. Round answer to two decimal places. You have correctly selected 0 ncorrect Marks for this submission: 0.00/1.00 Finish attempt...

Solution

Solution:

Cash flow from operating Activities = $1,800,000

Capital Expenditure = $765,000

Operating cash flow to capital expenditure ratio = Cash flow from operating Activities / Capital Expenditure

= $1,800,000 / $765,000 = 2.35