Why profitable firms sometimes have negative free cash flow

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Reference no: EM131490984

Question: 1. Do you consider the direct method to be more informative than the indirect method of presenting cash flow from operations?

2. GAAP cash flow statements treat interet capitalized during constrnction as investment in plant. Do you agree with this practice?

3. Explain why very profitable firms sometimes have negative free cash flows.

Reference no: EM131490984

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