The information in the following table is from the statement of cash flows for a company at four different points in time (Period 1, Period 2, Period 3, and Period 4). Negative values are presented in parentheses. Period 1 Period 2 Period 3 Period 4 Cash provided by operations $(162000) $81000 $324000 $45000 Cash provided by investing (270000) 67500 81000 (108000) Cash provided by financing 261000 (198000) ($1530000) $378000 Net income (108000) 27000 270000 (13500) Based on this information, which of the following answers most likely corresponds with the introductory phase, growth phase, maturity phase, or decline phase? Period 4, Period 3, Period 2, Period 1. Period 1, Period 4, Period 3, Period 2. Period 2, Period 1, Period 3, Period 4. Period 3, Period 4, Period 1, Period 2.

Respuesta :

Answer:

Period 1, Period 4, Period 3, Period 2.

Explanation:

Introductory phase is the phase in which the company introduces itself in the market, and there are huge investments, resulting into negative outflow, huge finance is borrowed, resulting in cash inflow, and there are generally huge negative operating results. Therefore, Period 1 is introductory phase.

Then come the growth phase in which the losses are reduced but the investments tend to continue and the financing is also continued, with this Period 4 is the growth phase.

In maturity phase the returns are positive and slightly higher than the growth phase, as the company starts paying back the financing sources, investments start providing the results, operating incomes are at peak. Therefore, Period 3 is the maturity phase.

In the declining phase, being the final phase of any company the company incurs huge payments to financers, as all the borrowings are settled up in maturity and declining period. Further, results of operations are positive but not too much like the maturity. Investments still pay back. Accordingly, the correct declining period is Period 2.

Answer:

The answer is going to be Period 1, Period 4, Period 3, Period 2.

Explanation:

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