What would be the effect on free cash flows of each of the


Question: What would be the effect on free cash flows of each of the following items:

a. Purchase of $400,000 of fixed assets

b. Sale of $220,000 of book value fixed assets for a loss of $50,000

c. A $90,000 increase in net working capital

d. Issuance of $600,000 of first mortgage bonds.

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Accounting Basics: What would be the effect on free cash flows of each of the
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