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Analyzing Cash Flow Ratios Molly Enterprises reported the following information for the past year of operations: Operating-Cash-Flow-to- Capital Expenditures Ratio 3.0 times Operating-Cash-Flow-to- Current Liabilities

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Analyzing Cash Flow Ratios Molly Enterprises reported the following information for the past year of operations: Operating-Cash-Flow-to- Capital Expenditures Ratio 3.0 times Operating-Cash-Flow-to- Current Liabilities Ratio 1.0 times Free Cash Flow $250,000 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 For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect

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