All operating companies need cash flow to exist and achieve sustainability. The

Question

All operating companies need cash flow to exist and achieve sustainability. The only way that a company can find cash flow is by earning it or gathering that cash flow in the financial markets. Earning it is relatively simple to describe but accessing the financial markets is a process that is best explained through a sequence of cash flows between the financial markets and the firm. Simplistically, that process has five steps as stated below. Please finish EACH of the sentences.

Cash is raised by ____________________________________________________________

Cash is invested in ___________________________________________________________

Cash is earned in_____________________________________________________________

Cash is reinvested in _________________________________________________________

OR

Cash is returned to ___________________________________________________________

Explanation / Answer

Cash is raised by selling securities and borrowing money

Cash is invested in current and fixed assets

Cash is earned in selling current and fixed assets

Cash is reinvested in the firm

Cash is returned to the investors

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