Analyzing the statment of cash flows may help analysts determine the financial h

Question

Analyzing the statment of cash flows may help analysts determine the financial health of a company. Which of the following is signs below is NOT an indicator of a financially healthy company?
a.The companys investing activites include more purchases than sales of long term assets
b.the company's financing activites are not dominated by borrowing
c. The company;s operations are a major use (not sourse) of cash

d.The companys operations are a major source (not a use) of cash

please explain how you got your answer

Explanation / Answer

Cash-flow signs of a healthy company: Operations are a major source of cash. Investing activities include more purchases than sales of long-term assets. Financing activities are not dominated by borrowing So the answer is: c. The company;s operations are a major use (not sourse) of cash This is because...[if (c) ]The ability to pay current liabilities with current assets is less

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