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Your Best Friend Just Lost His Job Because the Company

Question 19

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Your best friend just lost his job because the company he was working for went bankrupt.He was complaining to you that even though the company had been profitable for three years in a row,it still went out of business.He asks you how this can happen.
a_Explain the most likely reason for the company's declaring bankruptcy.Could your best friend have seen it coming? How?
b_Discuss the four purposes of the cash flow statement.

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a_A profitable company is a company whos...

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