Suppose: The following income Statements and Cash Flow Statements of company A, B and C were presented to you. Which do you thìnk is a more attractive company? Why? PART 4: ACTIVITY/APPLICATION COMPANY A COMPANY B Income Statement Cash Flows Income Statement Cash Flows Sales P 100,000 Collection from Customers P 100,000 Sales P 100,000 Collection from Customers PO Less: Costs 50,000 Payment of Expenses 50,000 Less: Costs 150,000 Payment of Expenses 50,000 Profits P 50,000 Net Cash Flow (P 50,000) Profits (P 50,000) Net Cash Flow P 50,000 COMPANY C Income Statement Cash Flows Sales P 100,000 Collection from Customers P 100,000 Less: Costs 70,000 Payment of Expenses 70,000

Suppose: The following income Statements and Cash Flow Statements of company A, B and C were presented to you. Which do you thìnk is a more attractive company? Why? PART 4: ACTIVITY/APPLICATION COMPANY A COMPANY B Income Statement Cash Flows Income Statement Cash Flows Sales P 100,000 Collection from Customers P 100,000 Sales P 100,000 Collection from Customers PO Less: Costs 50,000 Payment of Expenses 50,000 Less: Costs 150,000 Payment of Expenses 50,000 Profits P 50,000 Net Cash Flow (P 50,000) Profits (P 50,000) Net Cash Flow P 50,000 COMPANY C Income Statement Cash Flows Sales P 100,000 Collection from Customers P 100,000 Less: Costs 70,000 Payment of Expenses 70,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 85PSA

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