Question

A company reports the amounts below in its financial statements. Net cash flow from operating activities $24,480 Total net cash flow $50,400 Property, plant and equipment, beginning of year $44,400 Property, plant and equipment, end of year $55,200 Cash flow for acquisitions of property, plant and equipment $ 7,200 What is the company's operating cash flows to capital expenditures ratio at the end of the year? A. 2.3 B. 3.4 C. 3.1 D. 7.0 E. None of the above

Answer 1

B. 3.4

Step-by-step explanation:

operating cash flow = $24,480

cash flow for acquistions of property,plant and equipment = $7,200

operating cash flow to capital expenditure ratio = $24,480 /$7,200

= 3.4

Therefore, The company's operating cash flows to capital expenditures ratio at the end of the year is 3.4