Question - Cash-Generating Efficiency Ratios and Free Cash Flow
In 2011 Heart Corporation had year -end assets of $1,200,000 sales of $1,650,000 net income of $140,000, net cash flows from operating activities of $195,000.00 dividends of $60,000, purchases of plant assets of $250,000, and sales of plant asset of $45,000. In 2010, year-end assets were $1,050,000.
QUESTION: Calculate free cash flow and the cash-generating efficiency ratios of cash yield, cash flows to sales, and cash flows to assets.