Explain how the ratio of a companys cash flows from operations to current maturities of its debt

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Explain how the ratio of a company’s cash flows from operations to current maturities of its debt provides information about the safety of an investor’s holdings in that company. Does the ratio of cash flow to total debt provide the same information? Explain.

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Financial Accounting A Decision Making Approach

ISBN: 9780471328230

2nd Edition

Authors: Thomas E. King, Valdean C. Lembke, John H. Smith

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