Consider the following financial information of 3 companies. Company A Company B Company C Net Income...

Consider the following financial information of 3 companies.

Company A Company B Company C

Net Income $3,000 $3,000 $3,000

OCF $5,000 $4,600 $4,200

Which company's earnings are the most questionable (lowest quality)?

Company a

Company b

Company c

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Expert Solution


	Company A	Company B	Company C
Net Income	$ 3,000	$ 3,000	$ 3,000
Operating Cash Flow (OCF)	$ 5,000	4,600	$ 4,200.00


Operating cash flow means Net income added back the non cash expenses , Amortization and changes
in working capital of any organiation.
So it means if Operating cash flow is positive for any organization than it is positive for any company

Lowest operating cash flow is for Company C and this company is in questionable.

Answer = Company C

ekkarill92 answered 1 year ago

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