Which of the Following Would an Analyst Use When Trying

Multiple Choice

Which of the following would an analyst use when trying to determine if a company operating in a stable industry were generating enough cash flow from operations to maintain its productive capacity?

A) Cash from operations should equal cash outflows from investing activities.
B) Cash from operations should equal cash from financing activities.
C) Cash spent on new equipment equals approximately one-tenth of total assets.
D) Cash spent on new equipment equals approximately one-half of total assets.