Question: A company generated $1,500,000 from its operating activities and spent $900,000 on additions to its plant and equipment during the year. The total amount of

A company generated $1,500,000 from its operating activities and spent $900,000 on additions to its plant and equipment during the year. The total amount of debt that matures in the next five years is $750,000. Compute the company’s cash flow adequacy ratio for the year.

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