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A Company Reported the Following Information in Its 2014 Annual

Question 122

Multiple Choice

A company reported the following information in its 2014 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 Total payments expected to retire long-term debt over the next 5 years 250,000\begin{array}{ll}\text { Cash flows from operating activities } &\$295,000 \\\text { Additions to property, plant and equipment } &110,000 \\\text { Proceeds from disposals of property, plant and equipment } &57,000 \\\text { Total payments expected to retire long-term debt over the next 5 years } &250,000\end{array} What is the cash flow adequacy ratio for 2014?


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

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