Homework SourseCompany A reports sales of 100000 and net income of 15000 Co
Company A reports sales of $100,000 and net income of $15,000. Company B reports sales of $100,000 and net income of $10,000. Therefore:
A Company A’s cash flow may be higher or lower than Company Bs cash flow even though As net income is higher
B Company B is creating less value for its shareholders than Company A
C Company Bs accounts receivable must be higher than Company As accounts receivable
D Company As cash flow is $5000 more than Company Bs cash flow
Company A reports sales of $100,000 and net income of $15,000. Company B reports sales of $100,000 and net income of $10,000. Therefore:
A Company A’s cash flow may be higher or lower than Company Bs cash flow even though As net income is higher
B Company B is creating less value for its shareholders than Company A
C Company Bs accounts receivable must be higher than Company As accounts receivable
D Company As cash flow is $5000 more than Company Bs cash flow
A Company A’s cash flow may be higher or lower than Company Bs cash flow even though As net income is higher
B Company B is creating less value for its shareholders than Company A
C Company Bs accounts receivable must be higher than Company As accounts receivable
D Company As cash flow is $5000 more than Company Bs cash flow
Solution
Ans: (A) Company A’s cash flow may be higher or lower than Company B\'s cash flow even though A\'s net income is higher.
