Determine Packard's cash debt coverage ratio given the provided information: Packard Corporation reports the following information: Net cash provided by operating activities Average current liabilities Average long-term liabilities Dividends declared Capital expenditures Payments of debt \[ \begin{array}{l} \$ 762,500 \\ 120,000 \\ 32,500 \\ 60,000 \\ 537,500 \\ 35,000 \end{array} \] Packard's cash debt coverage is a. 5.00 b. 6.35 c. 3.50 d. 2.31

Step 1 ：\( \text{Average total liabilities} = \text{Average current liabilities} + \text{Average long-term liabilities} \)

Step 2 ：\( \text{Average total liabilities} = 120,000 + 32,500 \)

Step 3 ：\( \text{Average total liabilities} = 152,500 \)

Step 4 ：\( \text{Cash debt coverage ratio} = \frac{\text{Net cash provided by operating activities}}{\text{Average total liabilities}} \)

Step 5 ：\( \text{Cash debt coverage ratio} = \frac{762,500}{152,500} \)

Step 6 ：\( \boxed{\text{Cash debt coverage ratio} = 5.00} \)