Which company would have the lowest net cash flows

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Reference no: EM13536165

Business Applications Case Analyzing the cash flow effects of different types of expenses

The following income statements are available for Hopi, Inc., and Zuni, Inc., for 2011.


Hopi, Inc.

Zuni, Inc.

Revenue

$100,000

$100,000

Wages expense

70,000

55,000

Depreciation expense

10,000

25,000

Net earnings

$ 20,000

$ 20,000

Required

Assume that neither company had beginning or ending balances in its Accounts Receivable or Wages Payable accounts. Explain which company would have the lowest net cash flows from operating activities for 2011.

Reference no: EM13536165

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