Assume you are an investor interested in buying out a publicly traded company. There are several things you want to focus on to

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Assume you are an investor interested in
buying out a publicly traded company. There
are several things you want to focus on to
determine if this is a long-term investment.
Discuss the key factors you would evaluate on
the statement of cash flows and what
significance the income from operations line
item has on your decision. Also, discuss why
the accounts receivable turnover rate and
accounts payable turnover rate would be of
interest in your decision making.
Transcribed Image Text:Assume you are an investor interested in buying out a publicly traded company. There are several things you want to focus on to determine if this is a long-term investment. Discuss the key factors you would evaluate on the statement of cash flows and what significance the income from operations line item has on your decision. Also, discuss why the accounts receivable turnover rate and accounts payable turnover rate would be of interest in your decision making.
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