The following income statements are available for Hopi, Inc., and Zuni, Inc., for 2011.

Required
Assume that neither company had beginning or ending balances in its Accounts Receivable or Wages Payable accounts. Explain which company would have the lowest net cash flows from operating activities for 2011.

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Hopi, Inc. Zuni, Inc Revenue Wages expense Depreciation expense Net earnings $100,000 70,000 10,000 S100,000 55,000 25,000 20000 20,000