Chapter 10
The Statement of Cash Flow
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b) Why does the company have positive cash flow from investing activities? Would such
positive cash flow from investing activities be sustainable?
c) Calculate Cleancarpet Vacuums’ free cash flow in 2016.
Analysis
What could Cleancarpet Vacuums do if selling the equipment were not an action the
company could take, yet it still wanted to have a positive net cash flow at the end of the year?
