A Company Has Net Income of $43,560 with a Net

question 28

Multiple Choice

A company has net income of $43,560 with a net cash flow from operations of $91,476 and a net change in cash of $84,942.The company spent $72,600 on property,plant,and equipment during the year.The company's capital acquisitions ratio is: approximately:

• A)0.60.
• B)1.17.
• C)1.26.
• D)1.67.

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Definitions:

Synthetically Created

Created or manufactured using a combination of elements and processes to replicate or improve upon a natural product or financial instrument.

Zero-Coupon Bonds

Bonds that do not pay periodic interest payments and are issued at a deep discount, maturing at face value.

STRIPS

Separate Trading of Registered Interest and Principal Securities, a type of U.S. government security that allows the separate trading of interest and principal components.

Treasury Notes

Intermediate-term U.S. government debt security with a maturity of 1 to 10 years and pays interest every six months.