Use the following chart for questions 84-88.

-Based on the chart above which company profile will be fit the cash flow pattern for scenario 3?
A) Successful and growing, with growth partially financed by creditors and shareholders.
B) Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation.
C) Successful, with operating activities providing sufficient cash to finance growth and repay debt or pay dividends.
D) Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors.

Question

Use the following chart for questions 84-88.
 
-Based on the chart above which company profile will be fit the cash flow pattern for scenario 3?
A) Successful and growing, with growth partially financed by creditors and shareholders. 
B) Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation. 
C) Successful, with operating activities providing sufficient cash to finance growth and repay debt or pay dividends. 
D) Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors.

Quizplus · Accepted Answer

Successful and growing, with growth partially financed by creditors and shareholders.

Use the Following Chart for Questions 84-88