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Question 1: Suppose we are looking at a cash flow statement constructed using the INDIRECT method. We see a positive adjustment in the operating section of $1000 for Depreciation. Which of the following are correct interpretations of this? (Check all that apply)
Option 1: Depreciation provided cash of $1000
Option 2: The firm sold long term assets for $1000
Option 3: The firm invested $1000 of cash in long term assets
Option 4: Income was lowered by $1000 because of depreciation expense
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