Measures firms long term ability to meet its obligations

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Reference no: EM131300043

1. ___________ is calculated by adding back noncash exspenses to earnings before interest and taxes, subtracting taxes, and adjusting for any changes in total assests or current liabilities that affect cash flows.

a- distributable cash flow

b- capital spending

c- cash flow from assets

d- cash flow from investing activities

e-cash flow from creditors

2. Which one of these measures a firm's long term ability to meet its obligations?

a- cash ratio b- total asset turnover c- quick ratio d- return on equity e- equity multiplier

Reference no: EM131300043

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