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Consider the summary financial information (in millions) from the Statement of Cash Flows for the following three companies: Statement of Cash Flows Company A Company
Consider the summary financial information (in millions) from the Statement of Cash Flows for the following three companies:
Statement of Cash Flows | Company A | Company B | Company C |
Net Income | $10 | $10 | $10 |
Cash provided by Operating Activities | $9 | $8 | $7 |
Cash provided by Investing Activities | $3 | ($8) | ($8) |
Cash provided by Financing Activities | ($2) | $3 | $2 |
From this information alone, which company has the most questionable earnings quality?
Company A
Company B
Company C
There is no way to infer any conclusions from the information given.
The answer is company c. But why?
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