36) Why do investors use free cash flow to analyze a company?
37) How does the statement of cash flows aid analysts in the evaluation of a company’s financial situation?
38) Explain what investors look for in a statement of cash flows.
39) For each section of the statement of cash flows shown below, indicate an unhealthy company that has to pay its current liabilities by selling some of its long-term assets and borrowing from the bank. Use a plus for net cash inflow and minus for net cash outflow:
1. Cash flows from operating activities:
2. Cash flows from investing activities:
3. Cash flows from financing activities:
40) For each section of the statement of cash flows shown below, indicate a healthy company that has ample cash to buy long-term assets as well as pay off its loans to the bank. Use a plus for net cash inflow and minus for net cash outflow:
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