Alexus Corporation Statement of Cash Flows for 2012

Operating activities

Net income 4.0

Depreciation and amortization 2.5

Cash effect of changes in

Accounts receivable (10.5)

Accounts payable 5.5

Inventory (2.0)

Cash from operating activities (0.5)

Investment activities

Capital expenditures (66.9)

Acquisitions and other investing activities ------

Cash from investing activities (66.9)

Financing activities

Dividends paid (2.1)

Sale or purchase of stock ------

Increase in short-term borrowing 4.5

Increase in long-term borrowing 70.0

Cash from financing activities 72.4

Change in cash and cash equivalents 5.0

1. Based on the above statement of cash flows, the companys dividend payout ratio is closest to:

1. 52.5% b) 62.5% c) 50.5% d) 88.8%