Some firms can show excellent cash flows

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As we know, some firms can show excellent cash flows in general, but when you look at these more specific areas, you can identify potential financial weaknesses. For example, if most of a firm's cash flows are being generated from "Cash Flows from Investing Activities", this could mean things such as the sale of land, buildings, or equipment. Although those revenues might look great, it could also represent a sign of a major weakness. Why?

Reference no: EM131375145

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