MRC Company reports the following information for 2018: total assets of $65,000 and total cash provided from operations of $20,000; For 2017: total assets of $75,000 and cash provided from operations of $5,000. Cash flow on total assets for 2018 is (round to the nearest tenth) : ?

28.57%

Explanation:

The computation of the cash flow on total assets equal to

= Cash flow from operations : average total asset

where,

Cash flow from operations = $20,000

Average total asset is

= (Beginning total assets + ending total assets) : 2

= ($75,000 + $65,000) : 2

= $70,000

So, Cash flow on total assets for 2018 is

= $20,000 : $70,000

= 28.57%