The information below is for Vail Corporation for the most recent fiscal year.
$\begin{array}{lr}
\text { Current assets } & \$ 200,000 \
\text { Current liabilities } & 600,000 \
\text { Cash provided by operating activities } & 2,400,000 \
\text { Net income } & 1,200,000 \
\text { Capital expenditures } & 800,000
\end{array}$
What is Vail's capital expenditure ratio?
A)3.0
B)2.0
C)0.3
D)4.0
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The capital expenditure ratio is calculated as Cash provided by operating activities divided by Capital expenditures. Here, it is $2,400,000 / $800,000 = 3.0.

The Information Below Is for Vail Corporation for the Most