A ski resort 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

Seasonal variations in sales and inventory levels can cause net cash flows to fluctuate from one quarter to the next,but this usually does not indicate trouble.This would be especially true for a ski resort with seasonal variations during the fourth and first quarters due to guests going skiing during winter months.

A Ski Resort with a Calendar Year-End Is Likely to Have