The following relates to the composition of cashflows of Company P and Company Q. Other than this, both companies are similar in most aspects. Company P Net cash flows from: 2022 ($) 2021 ($) Company Q 2022 ($) 2021 ($) Operating activities (45,000) 18,000 135,000 63,000 Investing activities Proceeds from sale of operating assets Purchase of operating assets Financing activities 63,000 (72,000) (36,000) Proceeds from borrowings 27,000 9,000 Repayment of debts (18,000) Net cash flows 45,000 27,000 45,000 27,000 Examine the cashflows of both companies. Which is stronger financially?
The following relates to the composition of cashflows of Company P and Company Q. Other than this, both companies are similar in most aspects. Company P Net cash flows from: 2022 ($) 2021 ($) Company Q 2022 ($) 2021 ($) Operating activities (45,000) 18,000 135,000 63,000 Investing activities Proceeds from sale of operating assets Purchase of operating assets Financing activities 63,000 (72,000) (36,000) Proceeds from borrowings 27,000 9,000 Repayment of debts (18,000) Net cash flows 45,000 27,000 45,000 27,000 Examine the cashflows of both companies. Which is stronger financially?
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 6EB: Use the following excerpts from Indigo Companys balance sheets to determine net cash flows from...
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