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The Burratta Co. purchases a warehouse building with a total acquisition cost of $650,000. The company pays $65,000 cash, and signs a note to pay
The Burratta Co. purchases a warehouse building with a total acquisition cost of $650,000. The company pays $65,000 cash, and signs a note to pay the remaining $585,000 over the next five years. What is the cash flow amount resulting from this purchase? (Note 1: inflows are positive and outflows are negative. Note 2: subsequent interest payments are not relevant at the purchase date.)
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