In the years 20X0-20X3, Bee Co.'s capital expenditures ratio was 2.74 and from 20X4-20X7, it was 1.24. From 20X4-20X7, Are Co.'s ratio was .30. Which of the following statements about Bee Co.'s capital expenditures ratio is correct?
A) Bee Co.'s capital expenditure ratio is relatively low and indicates inability to finance property, plant and equipment with cash flow from operations.
B) It appears that Are Co. is more aggressive about investing in additional property, plant and equipment than is Bee Co.
C) Bee Co.'s ratio has improved in the period 20X4-20X7.
D) It appears that Bee Co. is more aggressive about investing in additional property, plant and equipment than is Are Co.
Correct Answer:
Verified
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