The cash flow adequacy ratio
A. Measures a company's ability to generate sufficient cash flow from investing to cover debt repayments
B. Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures and debt repayment
C. Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, inventory additions and dividends
D. Measures a company's ability to generate sufficient cash flows from operations to cover capital expenditures, debt repayment and dividends
Answer: C
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