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B1. A financial analyst is studying the income statement effect of two alternative depreciation methods for a recently acquired piece of equipment. She gathers the
B1. A financial analyst is studying the income statement effect of two alternative depreciation methods for a recently acquired piece of equipment. She gathers the following information about the equipment's expected production life and use: Year 1 Year 2 Year 3 Year 4 Year 5 Total Units of production 2,000 2,000 2,000 2,000 2,500 10,500 Compared with the units-of-production method of depreciation, if the company uses the straight-line method to depreciate the equipment, its net income in Year 1 will most likely be: lower. higher. the same. B2. Go to seekingalpha.com and select the following companies (TESLA, MSFT, GOOG, TWTR, AMZN, NFLX) and their Statement of Cash Flows and today's closing (current) stock price. Calculate their Free Cash Flow Ratio. On the basis of the Free Cash Flow Ratio ONLY, which company is in best shape
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