Question: OPERATING ACTIVITIES Net Income$ 5 0 , 0 0 0 Depreciation 1 2 , 0 0 0 Change in Accounts Receivable ( 8 5 ,

OPERATING ACTIVITIESNet Income$50,000Depreciation12,000Change in Accounts Receivable(85,000)Change in Inventory(120,000)Change in Other Current Assets(55,000)Change in Accounts Payable40,000Change in Accruals36,000CASH FLOW FROM OPERATIONS(122,000)INVESTING ACTIVITIESP, P, & E Purchases(190,000)Disposal of P, P, & E-CASH FLOW FROM INVESTING(190,000)FINANCING ACTIVITIESSale of capital stock220,000Repurchase of capital stock(14,000)Change in Borrowings88,000Payment of Dividends-CASH FLOW FROM FINANCING294,000NET CHANGE IN CASH$(18,000)
Which of the options provided is NOTtrue regarding Company H?
Company H has negative cash flows from operations because it has a negative gross income.
Company H has negative cash flows from investing because as it is just getting started, it does not have PP&E to dispose of.
Company H has large positive cash flows from financing because it seeks sources of cash to fund operations and investments.

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