Firms a b and c all show a large increase in the cash


Firms A, B and C all show a large increase in the cash account on their balance sheet from 2006 to 2007. Which firm would you prefer to invest in?

Firm A which generated the cash by a large positive cash flow from operating activities.

Firm B which generated the cash by a large positive cash flow from investing activities

Firm C which generated the cash by a large positive cash flow from financing activities

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Financial Management: Firms a b and c all show a large increase in the cash
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