45CashFlowStatement - 17 Award 10.00 points We calculate...

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17. Award: 10.00 points 18. Award: 10.00 points We calculate cash return on assets as: The change in cash divided by average total assets. Net cash flows from operating activities divided by average total assets. The change in cash divided by ending total assets. Net cash flows from operating activities divided by ending total assets. References Multiple Choice Learning Objective: 11-04 Perform financial analysis using the statement of cash flows. Which of the following statements is not true relating to cash flow analysis? Cash return on assets indicates the amount of operating cash flow generated for each dollar invested in assets. To maximize cash flow from operations, a company strives to increase both cash flow per dollar of sales and sales per dollar of assets invested. Cash return on assets can be separated to examine two important business strategies: cash flow to sales and asset turnover. Positive cash flow from operations is not important to a company's survival in the long-run. References
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