Cash Flow and Early Exits Why can it be misleading to use a firm's working capital to discuss cash flow without further qualification?

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
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Cash Flow and Early Exits

Why can it be misleading to use a firm's working capital to discuss cash flow without further qualification?

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