Which of the Following Would an Analyst Use When Trying

question 23

Multiple Choice

Which of the following would an analyst use when trying to determine if a company operating in a stable industry were generating enough cash flow from operations to maintain its productive capacity?

• A)Cash from operations should equal cash outflows from investing activities.
• B)Cash from operations should equal cash from financing activities.
• C)Cash spent on new equipment equals approximately one-tenth of total assets.
• D)Cash spent on new equipment equals approximately one-half of total assets.

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