Net cash flow provided by operations

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Reference no: EM131045475

Answer these two questions:

a) A firm has inventories of $2.5 million for the previous year and $2 million for the current year. What impact does this have on the net cash flow provided by operations?

b) A firm has net income of $5 million. Assuming that depreciation of $1million is its only noncash expense, what is the firms net cash flow?

Reference no: EM131045475

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