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Use the following information for LA Theaters to answer the question Which statement below is true with regard to the cash flow adequacy ratio of
Use the following information for LA Theaters to answer the question Which statement below is true with regard to the cash flow adequacy ratio of LA Theaters? The cash flow adequacy ratio indicates that LA Theaters had a significant increase in the dividends paid in 2016. The cash flow adequacy ratio indicates that LA Theaters is generating negative cash flow in both 2016 and 2015. The cash flow adequacy ratio indicates that LA Theaters can cover 100% of capital expenditures, debt repayments and dividends with cash from operations in 2016 and 2015. The cash flow adequacy ratio indicates that LA Theaters cannot cover all capital expenditures, debt repayments and dividends with cash from operations in 2016 or 2015
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