Which of the following would be typical of a Statement of Cash Flows for a healthy firm in a sustainable business?
A) Cash flow from operations is negative, cash flows from investment activities and financing activities are positive.
B) Cash flow from operations , investment activities and financing activities must all be positive.
C) Cash flow from operations is positive, cash flows from investment activities and financing activities are negative.
D) If the Statement shows a net increase in cash, the source is unimportant.

Question

Quizplus · Accepted Answer

A healthy firm in a sustainable business typically generates positive cash flow from its operations, indicating that its core business activities are profitable. It may have negative cash flows from investment activities because it is investing in long-term assets to support future growth, and negative cash flows from financing activities could indicate repayment of debt or distribution of dividends to shareholders.

Which of the Following Would Be Typical of a Statement