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Cash flow is the life-blood of a company. Does it matter whether the cash flow...

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Accounting

Cash flow is the life-blood of a company. Does it matter whether the cash flow comes from operating, investing, or financing activities as reported on the Statement of Cash Flows? In other words, should a user of financial statements focus on the total cash flow (net increase or decrease in cash for the year) as the key indicator or should that a user should focus on one of the three components of cash flows reported on the Statement of Cash Flows? Hint: think about the life-cycle of a business.

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