Companies that are in their first year of operation often generates little revenues from ordinary activities even if they invest a lot in their infrastructure and their working capital, mainly in the inventory. As a result, what would be the portrait of the cash flows of a company that is in its first year of operation? a) Cash flows for activities from operating activities: NEGATIVE Cash flows for activities from investing activities: NEGATIVE Cash flows for activities from financing activities: POSITIVE b) Cash flows for activities from operating activities: NEGATIVE Cash flows for activities from investing activities: POSITIVE Cash flows for activities from financing activities: POSITIVE X c) Cash flows for activities from operating activities: POSITIVE Cash flows for activities from investing activities: NEGATIVE Cash flows for activities from financing activities: NEGATIVE d) Cash flows for activities from operating activities: POSITIVE Cash flows for activities from investing activities: NEGATIVE Cash flows for activities from financing activities: POSITIVE

Companies that are in their first year of operation often generates little revenues from ordinary activities even if they invest a lot in their infrastructure and their working capital, mainly in the inventory. As a result, what would be the portrait of the cash flows of a company that is in its first year of operation? a) Cash flows for activities from operating activities: NEGATIVE Cash flows for activities from investing activities: NEGATIVE Cash flows for activities from financing activities: POSITIVE b) Cash flows for activities from operating activities: NEGATIVE Cash flows for activities from investing activities: POSITIVE Cash flows for activities from financing activities: POSITIVE X c) Cash flows for activities from operating activities: POSITIVE Cash flows for activities from investing activities: NEGATIVE Cash flows for activities from financing activities: NEGATIVE d) Cash flows for activities from operating activities: POSITIVE Cash flows for activities from investing activities: NEGATIVE Cash flows for activities from financing activities: POSITIVE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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