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Apply your understanding of the relationships among the financial statements to answer the following questions: a) How can a business earn large profits but have
Apply your understanding of the relationships among the financial statements to answer the following questions: a) How can a business earn large profits but have a small balance of retained earnings? (2) b) Give two reasons why a business can have a steady stream of net income over a six-year period and still experience a cash shortage. (2) c) If you could pick a single source of cash for your business, what would it be? Why? (3) d) How can
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