-Cash flow from operating activities- $275,000
Cash flow from financing activities- $75,000
Cash flow from investing activities- $25,000
Interest- $10,000
Taxes-$8,000
Capital expenditures- $15,000
Average amount of debt maturing over the next five years- $150,000
What is the cash flow adequacy ratio?
A. 0.500
B. 0.947
C. 1.056
D. 1.613Cash Flow Adequacy Ratio = (Cash Flow from Operations) / ( Long-term debt paid + Fixed assets purchased + Cash dividends distributed)
I'm coming up with 1.67
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