If a company’s current assets (such as accounts receivableand inventories) are allowed to grow out of control, whichof the following would occur?a. Cash flows from investing activities would be reduced.b. Cash flows from operating activities would be reduced.c. Cash flows from financing activities would increase.d. None of the above.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
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If a company’s current assets (such as accounts receivable
and inventories) are allowed to grow out of control, which
of the following would occur?
a. Cash flows from investing activities would be reduced.
b. Cash flows from operating activities would be reduced.
c. Cash flows from financing activities would increase.
d. None of the above.

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