A Company Reported the Following Information in Its Year 1

question 187

Multiple Choice

A company reported the following information in its Year 1 annual report: cash flows from operating activities,$295,000; additions to property,plant,and equipment,$110,000; proceeds from disposals of property,plant,and equipment,$57,000; and total payments expected to retire long-term debt over the next five years,$250,000.What is the cash flow adequacy ratio for Year 1?

• A) 0.74
• B) 3.70
• C) 5.90
• D) 6.96

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Definitions:

Meninges

Protective membranes covering the brain and spinal cord.

Dura Mater

The outermost and toughest of the three membranes covering the brain and spinal cord.

Radial Nerve

A nerve that extends down the arm and is responsible for extending the wrist and fingers.

Ulnar Nerve

A nerve running along the inner side of the arm and forearm, extending to the hand, responsible for movement and sensation.