1.Use the cash flow on total assets ratio to determine which of these three companies is using its assets most efficiently.
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Company A
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Company B
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Company C
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|
Cash provided by operations
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$ 300,000
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$ 600,000
|
$ 400,000
|
|
Cash provided (used) by investing activities
|
|
|
|
|
Purchase of operating assets
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(190,000)
|
(380,000)
|
(200,000)
|
|
Cash provided (used) by financing activities
|
|
|
|
|
Repayment of debt
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(100,000)
|
(210,000)
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(190,000)
|
|
|
|
|
|
Net Increase in cash
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$ 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