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During 2010,Edna Enterprises Had a Capital Acquisitions Ratio of 7

Question 70

Multiple Choice

During 2010,Edna Enterprises had a capital acquisitions ratio of 7.9.During 2010,Carlos' Corporation had a capital acquisitions ratio of 3.6.The amount of cash flow from operations was $5,968,000 for Edna's 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 2010 than did Carlos.
B) Edna has less need for external financing of its investments in property, plant and equipment indicated by its higher capital acquisitions ratio compared to Carlos.
C) Edna invested approximately $755,000 in property, plant and equipment during 2010.
D) Carlos invested approximately $182,000 in property, plant and equipment during 2010.

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