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1. The increases in cash & equivalents along with marketable securities is not equal to retained earnings. In addition, after- tax CFs generated by a

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1. The increases in cash & equivalents along with marketable securities is not equal to retained earnings. In addition, after- tax CFs generated by a firm for its investors from its underlying business activities (FCFs) are not equal to NOPAT, the income generated by the firm for all its investors. Explain the underlying accounting principles that lead to this conclusion

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