You are an investor looking to buy an ownership interest in a business. One company is a manufacturing company and the other is an online retailer. Here are the cash flow summaries for both: MFR ONLINE RETAILER Cash from Operations $75,000 $15,000 Cash from Financing 50,000 75,000 Cash from Investing <75,000> <25,000> Net Free Cash Flow $50,000 $65,000 If your most important investment criterion is “quality of cash flow” which of these two companies would you choose to invest your money in? Why?

You are an investor looking to buy an ownership interest in a business. One company is a manufacturing company and the other is an online retailer. Here are the cash flow summaries for both: MFR ONLINE RETAILER Cash from Operations $75,000 $15,000 Cash from Financing 50,000 75,000 Cash from Investing <75,000> <25,000> Net Free Cash Flow $50,000 $65,000 If your most important investment criterion is “quality of cash flow” which of these two companies would you choose to invest your money in? Why?

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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