uplysulan penorms a surgical operation and bills the patient's insurance company It may take four months to collect from the insurance company d) A construction company is building a highway system and construction will take five years When should the company record the revenue it earns? e) A utility bill is received on December 28 and will be paid next year QUESTION 3 [10 MARKS] Consider three independent cases for the cash flows of Promenade Shoes For each case, identify from the statement of cash flow how Promenade Shoes generated the cash to acquire new Property Plant and Equipment (PPE) Rank the three cases from the healthiest financially to the least healthy Case A1, Case B Case C- * RAR inte CORE 15 Cash flows from operating activities Net income Depreciation and amortization Increase in current assets Decrease in current liabilities 10 000 12 000 1 000 2 000 25 000 10 000 12 000 (5000) (19 000) (2 000) 10 000 12 000 2 000 3000 27 000 Cash flows from investing activities Acquisition of PPE Sales of PPE (99 000) 104 000 5 000 (99 000) 20 000 (79 000) (99 000) 33 000 (66 000) Cash flows from financing activities Issuance of shares Payment of debt 18 000 (27 000) (9 000 21 000 105 000 (20 000) 85000 4000 73000 (32 000) 41000 2000 Net increase (decrease) in cash [TURN OVER)