Ideally, an analyst would prefer that most of a company’s profits (and cash flow) come from [...]
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its operating activities.
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Open it Ideally, an analyst would prefer that most of a company’s profits (and cash flow) come from its operating activities.
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2. THE CLASSIFICATION OF BUSINESS ACTIVITIES rs. Examples include issuing common shares, taking out a bank loan, and issuing bonds.
Understanding the nature of activities helps the analyst understand where the company is doing well and where it is not doing so well. <span>Ideally, an analyst would prefer that most of a company’s profits (and cash flow) come from its operating activities. Exhibit 1 provides examples of typical business activities and how these activities relate to the elements of financial statements described in the following section.
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