Which one of the following is an important reason to evaluate a company's cash flow?
A) Without positive cash flows, a company is unable to recognize a positive net income.
B) Minimum cash balances must be maintained by all companies.
C) Stockholders want to know that the company can generate cash consistent with earning a reasonable return on their investments.
D) Creditors want to be assured that the company has significant cash inflows from financing activities.
Correct Answer:
Verified
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