Question: Schilit recognizes that cash flow shenanigans also exist when a
Schilit recognizes that cash flow shenanigans also exist when a company takes actions to send their desirable cash inflows to the most important section (Operating) and all of the unwanted cash out flows to the other sections (Investing and Financing). Given that regard less of the classification of the cash flows the result is the same with respect to the amount of change in cash flows during the designated period, what motive might exist to shift investing and/or financing cash flows to the operating section? Is this an ethical practice? Why or why not?
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