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Internet Project: Statement of Cash Flows. Using the Internet, find the most recent annual report for a company of your choice. Print the statement of cash flows and include it with your response to the following requirements.
Required:
a. How much cash was provided by (used by) operatingactivities? Compare this amount to net income (often called net earnings) and explain why the two are different.
b. What method did the company use to prepare theoperating activities section, direct or indirect? Explain.
c. How much cash was provided by (used by) investingactivities? Which activity in this section had the biggest impact on investing cash flows?
d. How much cash was provided by (used by) financingactivities? Which activity in this section had the biggest impact on financing cash flows?
e. Calculate free cash flow. Did the company generate enough cash from operating activities to cover capital expenditures? Explain.
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