Question

(Ch. 11)

The "________ flow ___ ________" ratio measures the operating cash flows generated for EACH dollar of sales

Answer 1

The "operating cash flow to sales" ratio measures the cash flow generated for each dollar of sales in business.

Step-by-step explanation:

In business, the "operating cash flow to sales" ratio is used to measure how much cash flow a company generates for each dollar of sales. This ratio is calculated by dividing the operating cash flow by the net sales.

For example, if a company has $500,000 in operating cash flow and $1,000,000 in net sales, the ratio would be 0.5 or 50%. This means that for every dollar of sales, the company generates 50 cents of operating cash flow.