1. Which of the following statements concerning the cash flow production cycle is true?
a) The profits reported in a given time period equal the cash flows generated.
b) A company’s operations and finances are independent of each other.
c) Financial statements have nothing to do with reality
d) The movement of cash to inventory, to accounts receivable, and back to cash is know as the firm’s working capital cycle
e) A profitable company will always have sufficient cash to meet its obligations
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