A company reported the following information in its annual report for 2014. $\begin{array}{ll}
\text { Cash flows from operating activities } &\$ 1,000,000 \
\text { Additions to property, plant and equipment } &450,000 \
\text { Total payments expected to retire long-term debt over the next 5 years } &500,000
\end{array}$ Compute the cash flow adequacy ratio for 2014.
A)1.10
B)2.00
C)5.50
D)7.50

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The Answer of A company reported the following information in its annual report for 2014. $\begin{array}{ll}
\text { Cash flows from operating activities } &\$ 1,000,000 \
\text { Additions to property, plant and equipment } &450,000 \
\text { Total payments expected to retire long-term debt over the next 5 years } &500,000
\end{array}$ Compute the cash flow adequacy ratio for 2014.
A)1.10
B)2.00
C)5.50
D)7.50

A Company Reported the Following Information in Its Annual Report