The Following Information Was Available from the Financial Statements of C

question 52

Essay

The following information was available from the financial statements of C Co. Company for the years 20X6 and 20X7 in millions of dollars: $$\begin{array} { | l | r | r | } \hline & 20 X 7 & 20 X 6 \\\hline \text { Cash flow from operating activities } & \$ 3,883 & \$ 3,433 \\\hline \text { Cash paid for purchases of property, plant, and equipment } & \$ 1,069 & \$ 863 \\\hline \text { Average property, plant and equipment, net } & \$ 3,968 & \$ 3,706 \\\hline\end{array}$$
A. Calculate the capital expenditures ratio for C Co. for the two years:
B. Comment on the suficiency of the capital expenditures ratio for the two years.

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Definitions:

Climate

The long-term pattern of weather in a particular area, defined by variables such as temperature, precipitation, and wind.

Sea Level

The average height of the ocean’s surface between high and low tide, used as a reference point for measuring the elevation or depth of geographical locations.

Glaciers Evidence

Indicators or markers left by glacier movements, such as moraines, striations, and changes in landscape topography.

V-Shaped Valleys

Valleys carved by rivers, characterized by their steep sides and narrow bottom, forming a "V" shape in cross-section.