Lincoln Company Reported the Following Information in Its Annual Report

Multiple Choice

Lincoln Company reported the following information in its annual report for 2016. $\begin{array}{lr}\text { Cash flows from operating activities } & \$ 300,000 \\\text { Capital Expenditures } & 225,000 \\\text { Average amount of debt maturing over the next } 5 \text { years } & 200,000\end{array}$ What is the cash flow adequacy ratio for 2016 for Lincoln Company?

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