part 1:

When preparing the statement of cash flows, a cash sale of equipment is reported as:

A positive adjustment to net income in the operating section

A cash inflow in the investing section

A cash outflow in the investing section

A negative adjustment to net income in the operating section

Part 2:

What is the calculation for free cash flow?

Operating cash - capital expenditures + cash dividends

Operating cash - capital expenditures - cash dividends

Operating cash + capital expenditures - cash dividends

Operating cash + capital expenditures + cash dividends

Part 3:

Free cash flow helps tell a user about a companys inventory efficiecy.

True

False