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28. Describe the general relationship between net income and net cash flows from operating activities for the firm.

. Has the buildup in plant and equipment been financed in a satisfactory manner?
Briefly discuss.

  • fin -

    What firm?

    You know, Scooby, we are not mind readers, nor do we have access to your class materials.

  • fin -

    28. Describe the general relationship between net income and net cash flows from operating activities for the firm.
    Net income

    This is the answer i came up with,

    represents the change in owners’ equity during a period, excluding the effects of any additional investments or withdrawals by the owners. It is computed as the difference between revenues and expenses.

    29)Has the buildup in plant and equipment been financed in a satisfactory manner?

  • fin -

    I suspect you are not applying this question to a book definition, but the question is asking you about a specific case, a specific firm. If that is correct, you totally missed the answer.

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