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Question
Company A reports sales of $100,000 and net income of $15,000. Company B reports sales of $100,000 and net income of $10,000. ThereforeA) Company A's cash flow may be higher or lower than Company B's cash flow even though A's net income is higher.
B) Company A's cash flow is $5,000 more than Company B's cash flow.
C) Company B is creating less value for its shareholders than Company A.
D) Company B's accounts receivable must be higher than Company A's accounts receivable.
Answer
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