Q8

8. Company A has the following information from its financial statements: Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Change in cash Year 1 (10,000) (20,000) 60,000 30,000 Year 2 40,000 (60,000) 65,000 45,000 Year 3 120,000 10,000 (40,000) 90,000 Which of the following statements is correct? O Cash Flow from Investing Activities has gone from negative in Years 1 and 2 to positive in Year 3. This trend is a desirable one because companies should strive for a positive Cash Flow from Investing Activities. O Cash Flow from Operating Activities has gone from negative in Year 1 to positive in Years 2 and 3. This trend is a desirable one because companies should strive for a positive Cash Flow from Operating Activities. O In Year 1, cash flow from operating activities was a net cash outflow, suggesting that Net Income of Year 1 was negative. O Cash Cash Flow from Financing Activities has gone from positive in Years 1 and 2 to negative in Year 3. This suggests the company is having difficulty obtaining financing