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A company which complains that although their income is quite satisfactory, cash is not available for dividends because of th

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Answer #1

Part 3

Answer is option D

D. expenditures required to replace long-lived assets are greater than depreciation expense.

When capital expenditures are higher than revenue expenses, the divided is not distributed.

Part 4

Answer is option D

Retire plant assets at salvage value

When plan assets is retired or sold, there is a cash inflow.

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