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In our Managerial Finance Class we spent a lot of class time making reference to the fact that assets are acquired and these must be paid for, hence the phrase right-hand side must equal to the left-hand side of the balance sheet. In the same way, we extend the very right-side & left side principle to the free cash flow situation in that the Cash flows from the assets must be equal to the cash flows that go to creditors and shareholders.

Explain the above truism using approximately 100 applicable words. You should cite sources such as class notes and, or the PDF textbook).