During 2014, Eva's Enterprises cash paid for property, plant and equipment was $755 million and cash flow from operating activities was $5,968 million. The average property, plant, and equipment from the comparative balance sheets were $6,094 million. Eva's capital acquisitions ratio for 2014 is closest to:

Question

Quizplus · Accepted Answer

The capital acquisitions ratio is calculated by dividing the cash paid for property, plant, and equipment by the average property, plant, and equipment. In this case, the capital acquisitions ratio is $755 million / $6,094 million = 0.124, or 12.4%. The closest answer choice is C) 7.9.

During 2014, Eva's Enterprises Cash Paid for Property, Plant and Equipment