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$DepreciationChange in Accounts ReceivableChange in InventoryChange in Other Current AssetsChange in Accounts PayableChange in AccrualsCASH FLOW FROM OPERATIONSINVESTING ACTIVITIESP P & E PurchasesDisposal of P P & ECASH FLOW FROM INVESTINGFINANCING ACTIVITIESSale of capital stockRepurchase of capital stockChange in BorrowingsPayment of DividendsCASH FLOW FROM FINANCINGNET CHANGE IN CASH$
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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