Lincoln Company reported the following information in its annual report for 2017: $$\begin{array} { l r }
\text { Cash flows from operating activities } & \$ 300,000 \
\text { Capital expenditures } & 225,000 \
\text { Average amount of debt maturing over the next } 5 \text { years } & 200,000
\end{array}$$What is the cash flow adequacy ratio for 2017 for Lincoln Company?

A)0.38
B)1.50
C)1.88
D)7.50

Question

Lincoln Company reported the following information in its annual report for 2017: $$\begin{array} { l r } 
\text { Cash flows from operating activities } & \$ 300,000 \
\text { Capital expenditures } & 225,000 \
\text { Average amount of debt maturing over the next } 5 \text { years } & 200,000
\end{array}$$What is the cash flow adequacy ratio for 2017 for Lincoln Company?

A)0.38
B)1.50
C)1.88
D)7.50

Quizplus · Accepted Answer

The Answer of Lincoln Company reported the following information in its annual report for 2017: $$\begin{array} { l r } 
\text { Cash flows from operating activities } & \$ 300,000 \
\text { Capital expenditures } & 225,000 \
\text { Average amount of debt maturing over the next } 5 \text { years } & 200,000
\end{array}$$What is the cash flow adequacy ratio for 2017 for Lincoln Company?

A)0.38
B)1.50
C)1.88
D)7.50

Lincoln Company Reported the Following Information in Its Annual Report