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During 2019,Edna Enterprises Had a Capital Acquisitions Ratio of 8

Question 70

Multiple Choice

During 2019,Edna Enterprises had a capital acquisitions ratio of 8.0.During 2019,Carlos Corporation had a capital acquisitions ratio of 3.4.The amount of cash flow from operating activities was $5,968,000 for Edna and $5,054,000 for Carlos.Which of the following statements is incorrect?


A) Edna used less cash for investments in property,plant and equipment during 2019 than did Carlos.
B) Compared to Carlos,Edna's capital acquisitions ratio is higher which indicates that Edna has less need for external financing of its investments in property,plant,and equipment.
C) Edna invested approximately $746,000 in property,plant,and equipment during 2019.
D) Carlos invested approximately one-half the amount that Edna invested in property,plant,and equipment during 2019.

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