Use the Following Chart for Questions 84-88

question 53

Multiple Choice

Use the following chart for questions 84-88.

-Based on the chart above which company profile will be fit the cash flow pattern for scenario 2?

• A) Successful, but actively relocating using financing from operations with cash from creditors and shareholders.
• B) Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation.
• C) Successful, mature company that is downsizing and returning capital to shareholders and repaying debt.
• D) Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors.

---

Definitions:

Solver

An optimization tool in Excel that finds the best solution to a problem by changing multiple variables.

Optimal Number

The most favorable, efficient, or effective quantity or value given a certain context or criteria.

Monthly Profit

The total revenue of a business minus its expenses, costs, and taxes calculated on a monthly basis.

Total Optimal Profit

The maximum possible profit that can be achieved in a given scenario, taking into account all constraints and limitations.