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Company A reports sales of $100,000 and net income of $15,000. Company B reports sales of $100,000 and net income of $10,000. Therefore. A. Company
Company A reports sales of $100,000 and net income of $15,000. Company B reports sales of $100,000 and net income of $10,000. Therefore.
A.
Company A's cash flow is $5,000 more than Company B's cash flow.
B.
Company B is creating less value for its shareholders than Company A.
C.
Company A's cash flow may be higher or lower than Company B's cash flow even though A's net income is higher.
D.
Company B's accounts receivable must be higher than Company A's accounts receivable.
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