Cash Flow Data for Interceptors, Incorporated. 2018 2019 2020 2018 Beginning Cash $ 35 $ 40 $ 45 $ 50 Cash from Operations $ 127 $ 125 $ 122 $ 117 Net Capital Spending ($ 140) ($ 130) ($ 140) ($ 145) Cash from Financing $ 18 $ 15 $ 23 Ending Cash $ 40 $ 45 $ 50 $ 55 Based on the cash flow data in the table for Interceptors Incorporated, which of the following statements is (are) correct? 1. This firm appears to be a good investment because of its steady growth in cash. 2. This firm has been able to generate growing cash flows only by borrowing or selling equity to offset declining operating cash flows. 3. Financing activities have been increasingly important for this firm's operations, at least in the short run.
Cash Flow Data for Interceptors, Incorporated. 2018 2019 2020 2018 Beginning Cash $ 35 $ 40 $ 45 $ 50 Cash from Operations $ 127 $ 125 $ 122 $ 117 Net Capital Spending ($ 140) ($ 130) ($ 140) ($ 145) Cash from Financing $ 18 $ 15 $ 23 Ending Cash $ 40 $ 45 $ 50 $ 55 Based on the cash flow data in the table for Interceptors Incorporated, which of the following statements is (are) correct? 1. This firm appears to be a good investment because of its steady growth in cash. 2. This firm has been able to generate growing cash flows only by borrowing or selling equity to offset declining operating cash flows. 3. Financing activities have been increasingly important for this firm's operations, at least in the short run.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Multiple Choice
1 only
2 and 3 only
2 only
1 and 2 only
Transcribed Image Text:Cash Flow Data for Interceptors, Incorporated.
2018
2019
2020
2018
Beginning Cash
$ 35
$ 40
$ 45
$ 50
Cash from Operations
$ 127
$ 125
$ 122
$ 117
Net Capital Spending
($ 140)
($ 130)
($ 140)
($ 145)
Cash from Financing
$ 18
$ 15
$ 23
Ending Cash
$ 40
$ 45
$ 50
$ 55
Based on the cash flow data in the table for Interceptors Incorporated, which of the following statements is (are) correct?
1. This firm appears to be a good investment because of its steady growth in cash.
2. This firm has been able to generate growing cash flows only by borrowing or selling equity to offset declining operating cash flows.
3. Financing activities have been increasingly important for this firm's operations, at least in the short run.
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