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70 words DQuestion 6 36 pts (TCO C) This is a two -part question. Part 1) Please

ID: 2391272 • Letter: 7

Question

70 words DQuestion 6 36 pts (TCO C) This is a two -part question. Part 1) Please indicate which section of the statement of cash flows should contain each of the following items, and whether each item would result in an inflow or outflow of cash. The sections are Operating, Investing, and Financing. (30 points) (a) Increase in accounts receivable (b) Purchase of a factory with cash (c) Depreciation of a building (d) Retirement of bonds with cash (e) Receipt of cash dividends Part 2) Explain how to calculate free cash flow and the importance of free cash flow to investors. HTML Editor Paragraph .? MacBook Pro F7 F8 8 3 4

Explanation / Answer

Answer A - inflow and operating activity

B - outflow - investing

C - inflow - operating

D - inflow- financing

E - inflow - financing

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