"You Decide" Essay
You are financial news reporter for the Wall Street Journal.During a recent press conference with the Chief Financial Officer of Lackluster Video,Inc.the executive stated that the company's financial health was excellent and that she expected their recent history of successful and strategic growth to continue to generate significant profits in the future as they expanded their video stores into several new major geographical markets.
To corroborate the CFO's statements,you examined the statement of cash flows and found that the company has reported negative operating cash flows,positive investing cash flows,and positive financing cash flows for each of the last five years.
Does the statement of cash flows support the CFO's statements?
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