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Often, investors will examine the cash flow statement to understand how a company uses its cash to fund its operations and invest is long-term productive

  1. Often, investors will examine the cash flow statement to understand how a company uses its cash to fund its operations and invest is long-term productive activities, such as property and machinery or to acquire businesses.

Required:Explain the benefits of using cash generating from operations to fund operations and make long-term productive investments as compared with other forms of financing, such as long-term debt or by issuing common stock.

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