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Why companies are concerned about the financial ability

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I have three accounting questions I am completely stuck on. Any help appreciated :)

1. Explain why companies are concerned about the financial ability of suppliers and customers

2. Write a paragraph explaining why net income that is substantially higher than cash flow from operations may indicate manipulation of earnings.

3. Go to the website of Yahoo! Finance (https://finance.yahoo.com). Enter the ticker symbols for Home Depot (HD) and Lowe's (LOW). For each firm, click on Key Statistics and note the ratio for profit margin (the ratio we called gross margin percentage). How do the two companies stack up in terms of this ratio?

Reference no: EM131771351

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