C213 Accounting for Decision Makers 6
2025/2026 Exam Questions and Detailed
Answers | Get it 100% Correct Answers
The following data came from the financial statements of the Green Company:
Cash from operations
$900,000
Cash from investing activities
350,000
Cash from financing activities
220,000
Cash paid for capital expenditures
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
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55,000
Net income
425,000
Compute the cash flow-to-net income ratio. - 🧠 ANSWER ✔✔2.12
$900,000 / $425,000 = 2.12
Cash from operations / Net income = cash flow-to-net income ratio.
The cash flow adequacy ratio is computed as - 🧠 ANSWER ✔✔Cash from
operations ÷ Cash for investing activities
Which cash flow ratio reflects a company's ability to finance its capital expansion
through cash from operations? - 🧠 ANSWER ✔✔Cash flow adequacy
Which cash flow ratio reflects a company's ability to make its interest payments
from cash generated through operations? - 🧠 ANSWER ✔✔Cash times interest
earned
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
, 3
The following data came from the financial statements of the Green Company:
Cash from operations
$900,000
Total assets
350,000
Cash from financing activities
220,000
Cash paid for investing activities
55,000
Net income
425,000
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED