If cash flows provided by operating activities are a relatively small amount, a company may offset this problem on a short-term basis by cutting back on capital expenditures or by borrowing funds or issuing stock.

Question

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If a company is facing a problem of small cash flows provided by operating activities, they can take short-term measures like cutting back on capital expenditures, borrowing funds or issuing stock to offset the problem.

If Cash Flows Provided by Operating Activities Are a Relatively