A toy store with a calendar year-end is likely to have:
A) unpredictable fluctuations in cash flow from quarter to quarter.
B) the largest cash inflow from operating activities in the second and third quarters (April - September).
C) a fairly stable cash flow across all four quarters.
D) the largest cash inflow from operating activities in the fourth and first quarters (October - March).

Question

Quizplus · Accepted Answer

Toy stores typically experience the highest sales during the holiday season, which falls in the fourth quarter (October - December), and may also have increased sales in the first quarter due to post-holiday sales and gift card redemptions.

A Toy Store with a Calendar Year-End Is Likely to Have