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Why is depreciation added to net income in the Cash Flow from Operating Activities section on a firm's Statement of Cash Flows? Select one: a.
Why is depreciation added to net income in the Cash Flow from Operating Activities section on a firm's Statement of Cash Flows? Select one: a. Assets are often not depreciated to zero on the balance sheet. b. Firms typically invest in new property, plant and equipment in a given year by an amount that exceeds the depreciation expense for that year c. Depreciation is a non-cash expense. d. The depreciation expense is completely offset by increases in retained earnings. Which of the following would, generally, indicate an improvement in a company's liquidity position, holding other things constant? Select one: a. Quick ratio decreases b. Times interest earne: (TIE) ratio declines c. Days' sales outstanding (DSO) ratio increases d. Current ratio increases
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