Total long term borrowing/cash generated from operation What does the above cash flow ratio shown above demonstrate to an entity? Solution A.Its ability to meet its long-term obligations from its cash flows raised from financing activities. B.An indication of the number of years it will take to repay its long-term obligations out of operating cashflows. C.The extent to which it can finance capital expenditure from operating cash flows. D.The cash return generated for the reporting year from its capital employed