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Question 1: Consider each of the following independent events from Basar Co. In each case, state whether the event would increase cash flow, decrease cash flow, or leave cash flow unchanged. If cash flow increased or decreased, state whether that would affect operations, financing, or investing.
a. The company charged depreciation expense of $100,000.
b. Common shareholders were issued a stock dividend. For every five shares held, they each received one additional share. The market value of the new shares was $100,000 in total.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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