A company reported the following information in its current year annual report: Cash flows from operating activities $295,000 Additions to property, plant and equipment 110,000 Proceeds from disposals of property, plant and equipment 57,000 Total payments expected to retire long-term debt over the next 5 years 250,000 What is the cash flow adequacy ratio for the current year? a. 0.74 b. 6.96 c. 3.70 d. 5.90