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Question Two Assume we have a firm that is in its mature phase of life. The firm is flush with cash and is not expanding,

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Question Two Assume we have a firm that is in its mature phase of life. The firm is flush with cash and is not expanding, indeed it is beginning to liquidate parts of the business. What would we expect is true of its cash flows from operations, its cash flows from financing, and its cash flows from investing? Explain your reasoning. Question Three Assume that you are looking at the statement of cash flows for Target Corporation. For each transaction explain what has happened and why the entry for the statement of cash flows makes sense. 1. There was a positive entry in the financing section for a change in bonds payable. 2. There was a negative entry in the investing section for a change in property, plant and equipment. 3. There was a negative entry in the operating section for a change in inventories. 4. There was a positive entry in the investing section for a change in property, plant and equipment. 5. There was a positive entry in the operating section for a change in accounts payable. 6. There was a positive entry in the financing section for a change in common stock. 7. There was a positive entry in the operating section for a change in accounts receivables

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