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Use the following information from Chocolate Company’s financial statements to determine operating net cash flows (indirect method).

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Question

Use the following information from Chocolate Company’s financial statements to determine operating net cash flows (indirect method).

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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