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TOPIC 1: Companies are required to classify cash flows as operating, investing, or financing. Which of...

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Operations Management

TOPIC 1: Companies are required to classify cash flows asoperating, investing, or financing. Which of these three categoriesdo you think will most likely have a net cash outflow over a numberof years? Explain your answer.

TOPIC 2: Which method of preparing the Operating Activitiessection of the statement of cash flows, the direct or the indirectmethod, do you believe provides more information to users of thestatement? Explain your answer.

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Answer Cash flows are classified as operating investing or financing activities on the statement of cash flows depending on the nature of the transaction Each of these three classifications is defined as follows Operating activities include cash    See Answer
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