During 2016, 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 2016 is closest to:

Question

Quizplus · Accepted Answer

The capital acquisitions ratio is calculated as cash flow from operating activities divided by cash paid for property, plant, and equipment. So, $5,968 million / $755 million = 7.9.

During 2016, Eva's Enterprises Cash Paid for Property, Plant and Equipment