The following chart presents the cash flow profiles of four companies. All four companies are in the same industry and are comparable in size. Based on this limited information, which company likely has the weakest quality of earnings?
A) Company 1
B) Company 2
C) Company 3
D) Company 4

Question

The following chart presents the cash flow profiles of four companies. All four companies are in the same industry and are comparable in size. Based on this limited information, which company likely has the weakest quality of earnings? 
A) Company 1 
B) Company 2 
C) Company 3 
D) Company 4

Quizplus · Accepted Answer

because Company 2 is apparently selling off long-term assets to finance operating cash flow losses and payments to capital providers as well as to de-emphasize its negative cash flows from operations.

The Following Chart Presents the Cash Flow Profiles of Four