Question
(TCO C) This is a 2-part question. Part 1) Please indicate which section of the statement of cash flows should contain each of the following
(TCO C) This is a 2-part question.
Part 1) Please indicate which section of the statement of cash flows should contain each of the following items, and whether each item would result in an inflow or outflow of cash. The sections are Operating, Investing, and Financing. (30 points)
(a) Increase in accounts receivable
(b) Purchased a factory with cash
(c) Depreciation of a building
(d) Retired bonds with cash
(e) Received cash dividends
Part 2) Please explain how to calculate free cash flow and the importance of free cash flow to investors. (6 points) (Points : 36)
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