Consider the following information relating to Interceptors Ltd. Based on the cash flow data in the table, which of the following statements is/are correct?
I. This firm appears to be a good investment because of its steady growth in cash.
II. This firm has only been able to generate growing cash flows by borrowing or selling equity to offset declining operating cash flows.
III. Financing activities have been increasingly important for this firm's operations, at least in the short run.
A)I only
B)II and III only
C)II only
D)I and II only

Question

Consider the following information relating to Interceptors Ltd.  Based on the cash flow data in the table, which of the following statements is/are correct?
I. This firm appears to be a good investment because of its steady growth in cash.
II. This firm has only been able to generate growing cash flows by borrowing or selling equity to offset declining operating cash flows.
III. Financing activities have been increasingly important for this firm's operations, at least in the short run.
A)I only 
B)II and III only 
C)II only 
D)I and II only

Quizplus · Accepted Answer

The Answer is B

Consider the Following Information Relating to Interceptors Ltd