Cash ﬂow from assets must be negative when:
A) The ﬁrm has a taxable loss for the year.
B) The cash ﬂow from creditors and the cash ﬂow from stockholders are both negative.
C) The cash ﬂow from creditors is negative and the cash ﬂow from stockholders is positive.
D) The change in net working capital exceeds the net capital spending.
E) Operating cash ﬂow is less than the change in net working capital.

Question

Quizplus · Accepted Answer

The Answer of Cash ﬂow from assets must be negative when:
A) The ﬁrm has a taxable loss for the year.
B) The cash ﬂow from creditors and the cash ﬂow from stockholders are both negative.
C) The cash ﬂow from creditors is negative and the cash ﬂow from stockholders is positive.
D) The change in net working capital exceeds the net capital spending.
E) Operating cash ﬂow is less than the change in net working capital.

Cash ﬂOw from Assets Must Be Negative When