The Following Information Was Available from the Financial Statements of C

Essay

The following information was available from the financial statements of C Co. Company for the years 20X6 and 20X7 in millions of dollars: $$\begin{array} { | l | r | r | } \hline & 20 X 7 & 20 X 6 \\\hline \text { Cash flow from operating activities } & \$ 3,883 & \$ 3,433 \\\hline \text { Cash paid for purchases of property, plant, and equipment } & \$ 1,069 & \$ 863 \\\hline \text { Average property, plant and equipment, net } & \$ 3,968 & \$ 3,706 \\\hline\end{array}$$
A. Calculate the capital expenditures ratio for C Co. for the two years:
B. Comment on the suficiency of the capital expenditures ratio for the two years.