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Which firm appears to be purchasing long-term assets

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Reference no: EM132608505

Question - Firm A and Firm B have the following cash flows:

Cash flows from: (in 000's)

Firm A

Firm B

Operating Activities

$50,000

$(50,000)

Investing Activities

(40,000)

10,000

Financing Activities

90,000

50,000

Net increase in cash

$100,000

$10,000

Required - Which firm appears to be purchasing long-term assets?

a. Firm B

b. Neither firm

c. Firm A

d. Both firms

Reference no: EM132608505

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