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Subject 3. Cash Flow Statement Analysis s point of view, cash flows from operation activities have two major drawbacks:
CFO does not include charges for the use of long-lived assets. Recall that depreciation is added back to net income in arriving at CFO. <span>CFO does not include cash outlays for replacing old equipment.
Free Cash Flow (FCF) is intended to measure the cash available to a company for discretionary uses after making all required cash outlays. It accoun
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