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What happens when a company is profitable

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Reference no: EM132612960

Question -

Q1: Which statement summarizes changes to parts of the balance sheet? a. Income statement b. Cash flow statement c. Neither of the above d. Both of the above

Q2: What happens when a company is profitable but collection lags behind payments to vendors?

a. The company is OK because profits always become cash

b. The company stands a good chance of running out of money

c. The company needs to shift its focus to EBIT

d. The cash flow statement will show a negative bottom line

Reference no: EM132612960

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