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Question 40 1 pts In order to generate cash, Company L securitized its accounts receivable through a special purpose entity.Company M pledged its accounts receivable
Question 40 1 pts In order to generate cash, Company L securitized its accounts receivable through a special purpose entity.Company M pledged its accounts receivable to a local bank in order to secure a short-term loan. Assuming Company L and Company M are identical in all other respects, which company has higher operating cash flow and which company has higher financing cash flow? Higher operating cash flow: Company L; Higher financing cash flow: Company L Higher operating cash flow: Company L; Higher financing cash flow: Company M Higher operating cash flow: Company M; Higher financing cash flow: Company L
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