Why has cash flow from operations become increasingly important as an analytical tool? (a) Inflation has distorted

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Why has cash flow from operations become increasingly important as an analytical tool?

(a) Inflation has distorted the meaningfulness of net income.

(b) High interest rates can put the cost of borrowing to cover shortterm cash needs out of reach for many firms.

(c) Firms may have uncollected accounts receivable and unsalable inventory on the books.

(d) All of the above.

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Understanding Financial Statements

ISBN: 9780138114404

12th Edition

Authors: Lyn Fraser, Aileen Ormiston

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