During 2012, Mark Walker, Inc. had cash flow from operations of $330,000, dividends paid totaling $15,000, and equipment purchases of $120,000. The ratio of cash flow from operations to capital expenditures is:
A) 2.63.
B) 0.36.
C) 2.75.
D) 2.88.

Question

Quizplus · Accepted Answer

The ratio of cash flow from operations to capital expenditures is calculated by dividing the cash flow from operations ($330,000) by the capital expenditures (equipment purchases of $120,000), which equals 2.75 ($330,000 / $120,000 = 2.75). However, the correct calculation results in 2.75, but since that option is not correctly matched with the choices given, it appears there was a mistake in the question or answer choices. Based on the choices provided, the closest correct answer would be A) 2.63, assuming a typographical error in the question or choices.