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Why is it important to calculate cash flow ratios? Firms need cash to service debt, dividends and expenses. Companies that generate healthy profits may be

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Why is it important to calculate cash flow ratios? Firms need cash to service debt, dividends and expenses. Companies that generate healthy profits may be unable to convert profits into cash. O Any and all of these statements are correct. O Cash flow ratios help the analyst assess the a company's ability to manage its short-term and long-term debt-carryign ability

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