Question
Ivanhoe Company had the following transactions that took place during the year: I. Paid amount owing to suppliers $2860. II. Purchased new equipment for $5200
Ivanhoe Company had the following transactions that took place during the year:
I.
Paid amount owing to suppliers $2860.
II.
Purchased new equipment for $5200 by signing a long-term note payable.
III.
Purchased a patent and paid $15600 cash for the asset.
How what is the total effect of these transactions on free cash flow?
Decrease
Increase
No Effect
Cannot be determined
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
6th edition
1292063467, 978-1292063461
