Question
Consider three independent cases for the cash flows of Texas Tires Corp. (Click the icon to view the statement of cash flows.) Required For each
Consider three independent cases for the cash flows of Texas Tires Corp. (Click the icon to view the statement of cash flows.) Required For each case, identify from the statement of cash flows how Texas Tires Corp. generated the cash to acquire new plant assets. Rank the three cases from the most healthy financially to the least healthy. Case A: Case B: Case C: generated cash for the acquisition of plant assets. Operations provided a generated cash for the acquisition of plant assets. Operations provided a generated Rank the three cases from the most healthy financially to the least healthy. Most healthy financially Mid-range Least healthy financially for the acquisition of plant assets. Case A Case B Case C Cash flows from operating activities: Net income $ 14,000 $ 14,000 $ 14,000 Depreciation and amortization 17,000 17,000 17,000 Increase in operating current assets (1,000) (7,000) (3,000) Decrease in operating current liabilities (3,000) (27,000) (4,000) 27,000 (3,000) 24,000 Cash flows from investing activities: Acquisition of plant assets (141,000) (141,000) (141,000) 148,000 28,000 47,000 Sales of plant assets. 7,000 (113,000) (94,000) Cash flows from financing activities: Issuance of share. 26,000 149,000 104,000 Payment of debt (38,000) (28,000) (45,000) (12,000) 121,000 59,000 $ 22,000 $ 5,000 $ (11,000) Net increase (decrease) in cash Print Done
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