There are many differences between financial and managerial

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1.Use the cash flow on total assets ratio to determine which of these three companies is using its assets most efficiently.


Company A

Company B

Company C

Cash provided by operations

$ 300,000

$ 600,000

$ 400,000

Cash provided (used) by investing activities




     Purchase of operating assets

(190,000)

(380,000)

(200,000)

Cash provided (used) by financing activities




     Repayment of debt

(100,000)

(210,000)

(190,000)





Net Increase in cash

$    10,000

$     10,000

$    10,000

Average total assets

$ 2,500,000

$ 6,000,000

$ 5,000,000

2. There are many differences between financial and managerial accounting. Identify and explain at least 5 of these differences

Reference no: EM13566795

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