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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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