Question

“Businesses from all walks of life are haemorrhaging cash as the COVID-19 pandemic sweeps the globe.”

This statement is mentioned in the required reading, explain what the statement above means in terms of its impact on ‘cash flows’ to be generated from operating, investing and financing activities.

Answer 1

The statement means that cash flows to be generated from operating, investing and financing activities will decrease sharply as a result of pandemic, so some businesses will shut down.