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What would be the effect on free cash flows of each of the following items (be sure to include specifically whether "increase" or "decrease/reduce," and by what dollar amount):

a. Purchase of $350,000 of fixed assets

b. Sale of $250,000 of book value fixed assets for a loss of $80,000

c. A $200,000 increase in net working capital

d. Issuance of $500,000 of first mortgage bonds

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9443927

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