Question
A large NBFC reported an increase in operating profit
over the last year. However, its cash flow from operations was negative due to a sharp rise in receivables and a decrease in payables. Analysts are questioning the firm’s liquidity and sustainability. Which tool would be most relevant in identifying such a red flag?Solution
The Cash Flow Statement reveals actual cash movement and highlights discrepancies between accounting profit and real liquidity, exposing operational stress not visible in profit figures.
The oath of office to the governor is administered by
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Where the buyer wrongfully neglects or refuses to accept and pay for the goods