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Which of the following is a common finding in looking at the statement of cash flows of a declining company?

A) A positive cash flow from operating activities.
B) A negative cash flow from investing activities.
C) A positive or negative cash flow from financing activities.
D) None of the above.

User Nleslie
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Final answer:

In a declining company's statement of cash flows, a common finding is a negative cash flow from operating activities.

Step-by-step explanation:

In the statement of cash flows of a declining company, a common finding is a negative cash flow from operating activities. This means that the company is experiencing a decrease in its cash generated from its core business operations.

Other common findings in a declining company's statement of cash flows could include a negative cash flow from investing activities, as the company may be divesting or reducing its investments in assets, and a positive or negative cash flow from financing activities, depending on the company's financial decisions such as borrowing or repaying debt or issuing and buying back shares.

Therefore, the correct answer is D) None of the above.

User Gio Polvara
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