Normally, cash flows from investing activities will start providing cash during which phase of the product life cycle? a

1. Normally, cash flows from investing activities will start providing cash during which phase of the product life cycle?
   a. intro
   b. growth
   c. maturity
   d. decline

c. maturity

2. Normally cash flows from financing will start using cash during which phase?
   a. intro
   b. growth
   c. maturity
   d. decline

c. maturity

3. Operating Cash flows in relation to product life cycle

Intro- begin negative
growth- start to become positive
maturity- reach peak, start to decline at end
decline- decrease

4. Investing Cash flows in relation to product life cycle

Intro- begin negative
growth- stay negative
maturity- become positive, start to decline at end
decline- decrease

5. Financing Cash flows in relation to product life cycle

Intro- positive
growth- positive
maturity- start to decrease at end
decline- decrease

6. 1. Tech Corporation is a developer of computer software for the gaming industry. The company recently launched its first software title. The company is expanding its operations by hiring additional developers and administrative staff. The company is not yet profitable, but expects to break even within two years. Investors view it as having a first mover advantage and have been happy to invest in the company.

This company is in the intro phase

Operating- negative
Investing- negative
Financing- positive

7. 2. Midwest Corporation is a supplier to the agricultural industry. The company is experiencing its 25th year of profitability, but is concerned that sales have contracted for the fifth year in a row. Midwest prides itself in paying dividends and having no debt on its balance sheet.

This company is in the maturity/ early decline phase

Operating- positive and declining
Investing- positive and declining
Financing- negative due to dividends

8. 3. Semi Inc. manufactures semiconductors. The company has just introduced its ninth new product and is the leader in market share for the industry. The company continues to invest in research and development and expand by purchasing competitors. The company has yet to pay dividends, but is considering it in the future. The company's largest current asset is cash, due to its high profit margin.

This company is in the growth phase

Operating- positive
Investing- negative
Financing- positive, maybe turning negative

9. Earnings manipulation more or less likely?
   1. Days Sales in Receivable Index increases
   2. Gross Margin Index decreases
   3. Asset Quality Index increases
   4. Depreciation Index decreases
   5. Sales Growth Index increases
   6. Total Accruals/Total Assets Index decreases

1. Days sales in receivable index increases- more likely
2. Gross margin index- less likely
3. Asset Quality increases- more likely
4. Depreciation index decreases- less likely
5. Sales growth index increases- more likely
6. Total Accruals/Total assets index decreases- less likely

10. The best measure of a firm's sustainable income is
    a. net income
    b. income from continuing ops
    c. income before extraordinary items
    d. income before extraordinary items and change in principles

b. income from continuing ops