In 2012,C Co.disclosed cash paid for property,plant and equipment of $1.069 million and cash flow from operations of $3.883 million.Their average property,plant and equipment from the comparative statement of financial position was $3.968 million.Compute C Co.'s capital acquisitions ratio for 2012.
A).28
B).77
C).98
D)3.63

Question

Quizplus · Accepted Answer

The capital acquisitions ratio is calculated by dividing cash flow from operations by cash paid for property, plant, and equipment. Thus, $3.883 million / $1.069 million = 3.63.