Question: Consider the summary financial information (in millions) from the Statement of Cash Flows for the following three companies: Statement of Cash Flows Company A Company

Consider the summary financial information (in millions) from the Statement of Cash Flows for the following three companies:

Statement of Cash Flows Company A Company B Company C
Net Income $10 $10 $10
Cash provided by Operating Activities $9 $8 $7
Cash provided by Investing Activities $3 ($8) ($8)
Cash provided by Financing Activities ($2) $3 $2

From this information alone, which company has the most questionable earnings quality?

Company A

Company B

Company C

There is no way to infer any conclusions from the information given.

The answer is company c. But why?

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