Question

The ability of the firm to meet future expansion requirements

Answer 1

Answer:

Analysis of cash flow from investing activities focuses on ratios when assessing a company's ability to meet future expansion requirements. The free cash flow is useful when analysts want to see how much cash can be extracted from a company without causing issues to its day to day operations.

Explanation:

Analysis of cash flow from investing activities focuses on ratios when assessing a company's ability to meet future expansion requirements. The free cash flow is useful when analysts want to see how much cash can be extracted from a company without causing issues to its day to day operations.