An outdoor water park that has a calendar year-end and is located in an area of the country that has warmer weather during April through September and colder weather during the rest of the year 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 through 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 through March).

Question

Quizplus · Accepted Answer

Given that the outdoor water park is located in an area of the country that has warmer weather during April through September,it would be reasonable to expect that the largest cash inflows from operating activities would occur in the second and third quarters (April through September when the weather is warmer)rather than in the fourth and first quarters (October through March when the weather is colder).

An Outdoor Water Park That Has a Calendar Year-End and Is