Reference no: EM133085702
Question - Spencer Company reports the following amounts in its annual financial statements:
Cash flow from operating activities $90,000 Capital expenditures $35,000*
Cash flow from investing activities (40,000) Average current assets 80,000
Cash flow from financing activities (5,000) Average current liabilities 60,000
Net income 25,000 Total assets 150,000
* This amount is a cash outflow
a. Compute Spencer's free cash flow.
b. Compute Spencer's operating-cash-flow-to-current-liabilities ratio.
c. Compute Spencer's operating-cash-flow-to-capital-expenditures ratio.