Canadian Beer had a capital acquisitions ratio of 7.49,which means its net income exceeded its cash investment in property,plant and equipment by almost 7.5 times.

Question

Quizplus · Accepted Answer

The capital acquisitions ratio indicates the amount of cash flow available to fund new investments in property, plant, and equipment, not the comparison of net income to cash investment. A ratio of 7.49 means the company's cash flow from operations is 7.49 times its capital expenditures, not that its net income exceeded its investments by that amount.

Canadian Beer Had a Capital Acquisitions Ratio of 7