Page 57 - FINAL CFA I SLIDES JUNE 2019 DAY 7
P. 57

Session Unit 7:

                                                                                        26. Understanding Cash Flow Statements


                                                                                                                   Answer:

                                                                                                                   Operating cash

                                                                                                                   flow has
                                                                                                                   decreased as a %

                                                                                                                   of revenues. This

                                                                                                                   appears to be due
                                                         tanties                                                   largely to

                                                                                                                   accumulating

                                                                                                                   inventories.
                                                                                                                   Investing

                                                                                                                   activities,

                                                                                                                   specifically
                                                                                                                   purchases of plant

                                                                                                                   and equipment,

                                                                                                                   have also required

                                                                                                                   an increasing
                                                                                                                   percentage of the

                                                                                                                   firm’s cash flow.
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