You are considering an investment in a company that has negative cash flow from operations, negative cash

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You are considering an investment in a company that has negative cash flow from operations, negative cash flow from investing, and positive cash flow from financing. All the financing in the current year is from short-term debt. What does this pattern of cash flow tell you about the client’s circumstance? How does this affect your investment decision?

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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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