The following information was available from the financial statements of Collateral,Inc.for the years 2010 and 2009 (in millions of dollars):
$\begin{array}{lrr}
& \underline{2010}& \underline{2009}\
\text { Cash flow from operating activities } & \$ 5,968 & \$ 5,456 \
\text { Cash paid for purchases of property, plant and equipment } & 755 & 812 \
\text { Property, plant and equipment, net } & 6,091 & 6,097
\end{array}$ Requirements:
A.Calculate the capital acquisitions ratio for each of the two years.
B.Comment on the sufficiency of the capital acquisitions ratio for the two years.

Question

The following information was available from the financial statements of Collateral,Inc.for the years 2010 and 2009 (in millions of dollars):
 $\begin{array}{lrr}
  & \underline{2010}& \underline{2009}\
\text { Cash flow from operating activities } & \$ 5,968 & \$ 5,456 \
\text { Cash paid for purchases of property, plant and equipment } & 755 & 812 \
\text { Property, plant and equipment, net } & 6,091 & 6,097
\end{array}$ Requirements:
A.Calculate the capital acquisitions ratio for each of the two years.
B.Comment on the sufficiency of the capital acquisitions ratio for the two years.

Quizplus · Accepted Answer

The Answer of The following information was available from the financial statements of Collateral,Inc.for the years 2010 and 2009 (in millions of dollars):
 $\begin{array}{lrr}
  & \underline{2010}& \underline{2009}\
\text { Cash flow from operating activities } & \$ 5,968 & \$ 5,456 \
\text { Cash paid for purchases of property, plant and equipment } & 755 & 812 \
\text { Property, plant and equipment, net } & 6,091 & 6,097
\end{array}$ Requirements:
A.Calculate the capital acquisitions ratio for each of the two years.
B.Comment on the sufficiency of the capital acquisitions ratio for the two years.

The Following Information Was Available from the Financial Statements of Collateral,Inc.for