Part 1) Please indicate which section of the statement of cash flows should contain each of...

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Accounting

Part 1) Please indicate which section of the statement of cashflows should contain each of the following items, and whether eachitem would result in an inflow or outflow of cash. The sections areOperating, Investing, and Financing. (30 points) (a) Increase inaccounts receivable (b) Purchase of a factory with cash (c)Depreciation of a building (d) Retirement of bonds with cash (e)Receipt of cash dividends Part 2) Explain how to calculate freecash flow and the importance of free cash flow to investors.

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ANSWER a Increase in accounts receivable will come under the operating a ticket section because a count receivable includes goods and services provided on a credit basis which are operational activities of an organization Hence it will be operating activity Further increase in accounts receivable will lead to outflow of cash b Purchase of factory with cash it will come under investing activity Further purchasing See Answer

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