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Analyze the firms past and possibly future profitability

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Reference no: EM13202394

1. Given the following statement, please indicate whether it is true or false, and why: "The statement of cash flows allows the financial manager and other interested parties to analyze the firm's past and possibly future profitability."

2. Given the following statement, please indicate whether it is true or false, and why: "The effective interest rate generally is lower than the stated annual rate if the loan is a discount loan."

Reference no: EM13202394

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