[will]

I need help figuring out how they got to the answer for Operating cash flow ratio on a sim for the BEC prac. exam. The formula wants CF from operations, how would I find that from just the IS and BS? Feel like I am missing something here. I sit for the real deal tomorrow morning (Last test, freaking out!) Wish me luck!

Took my last Becker ME 3 test yesterday and got a 81%. I am hoping that is a good sign. Normally I spend the last day before my exams relaxing and not overdoing it, but this question is driving me crazy.

[chandler]

Will,

Here, it's helpful if you'll post the question as they change these from time to time. I went to pull the practice exam to help you out though.
Cash flow from operations is given/stated in the problem. The formula for operating cash flow ratio is given in the bank loan covenant excerpt.
You simply divide cash flow from operations ($2,050,000) by current liabilities in the statement of financial position (5,320,000) to get .39

Hope this helps!

[Author]

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