If net cash flows from operating activities were 187000 net

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

Solution

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