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(7)COMMERCIAL BANK PRACTICE AND POLICY QUESTION 2. Answer the following questions based on the different scenarios: a. A firm is reporting net income that is

(7)COMMERCIAL BANK PRACTICE AND POLICY QUESTION

2. Answer the following questions based on the different scenarios:

a. A firm is reporting net income that is increasingly rising each year, but is experiencing negative cash flow from operations. Provide two reasons why this might be the case and explain each.

b. In a FLAT sales environment, how is a Bank Loan repaid? What is the source of repayment?

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