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If a company is to successfully remain in business over the long haul, which of

ID: 2359413 • Letter: I

Question

If a company is to successfully remain in business over the long haul, which of the following statements is most correct? 1) Total cash flow from operations, measured over an extended period, must be greater than zero 2)Total cash flow from investing, measured over an extended period, must be positive 3) Total cash flow from financing, measured over an extended period, should be negative 4)Total cash flow from financing plus total cash flow from investing, measured over an extended period, must be positive

Explanation / Answer

4 - Total cash flow from financing plus total cash flow from investing, measured over an extended period, must be positive

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