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Analyzing Cash Flow Ratios Molly Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will (1)
Analyzing Cash Flow Ratios Molly Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will (1) increase, (D) decrease, or (N) have no effect. Free Cash Flow $250,000 Operating-Cash-Flow-to-Operating-Cash-Flow-to- Current Liabilities Ratio Capital Expenditures Ratio 1.0 times 3.0 times Transaction a. Recorded credit sales of $7,000 b. Collected $4,000 owed from customers C. Purchased $18,000 of equipment on long-term credit d. Purchased $16,000 of equipment for cash e. Paid $5,000 of wages with cash f. Recorded utility bill of $1,750 that has not been paid
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