Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2008
Investment activities
Financing activities

-Consider the above statement of cash flows. Which of the following is true of AOS Industries' operating cash flows?
A) It collected more cash from its customers than it charged.
B) It sold more inventory than it bought.
C) It charged more on its accounts payable back than it paid back.
D) All of the above are true.

Question

Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2008
  Investment activities
  Financing activities
 
-Consider the above statement of cash flows. Which of the following is true of AOS Industries' operating cash flows?
A) It collected more cash from its customers than it charged. 
B) It sold more inventory than it bought. 
C) It charged more on its accounts payable back than it paid back. 
D) All of the above are true.

Quizplus · Accepted Answer

The statement of cash flows for AOS Industries indicates that its operating cash flows were positive in several areas: collecting more cash from customers than it charged (indicating efficient accounts receivable management), selling more inventory than it bought (indicating efficient inventory turnover), and charging more on its accounts payable than it paid back (indicating efficient use of credit and cash management). These activities contribute to positive operating cash flow.

Use the Table for the Question(s) Below