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Scenario Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities 1. + + + 2. + + - 3.
Scenario | Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities |
1. | + | + | + |
2. | + | + | - |
3. | + | - | + |
4. | + | - | - |
5. | - | + | + |
6. | - | + | - |
7. | - | - | + |
8. | - | - | - |
Based on the chart above which company profile will be fit the cash flow pattern for scenario 2?
A | Successful, but actively relocating using financing from operations with cash from creditors and shareholders. |
B | Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation. |
C | Successful, mature company that is downsizing and returning capital to shareholders and repaying debt. |
D | Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors. |
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