medium · Financial Accounting financial-statement-analysis-ratios

Madison Distributors reports a net income of $100 million and a Cash Flow from Operations of $60 million. The firm’s Net Operating Assets grew from $400 million to $480 million during the year.

What is the firm’s Accrual Ratio based on the Sloan (1996) methodology?

  1. 18.18%
  2. 40.00%
  3. 16.67%
  4. 20.00%

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