Question: . 1. Explain, that capital expenditures help increase assets, yet other cash flows like taxes and paying salary do not do so but create an

1. Explain, that capital expenditures help increase assets, yet other cash flows .

1. Explain, that capital expenditures help increase assets, yet other cash flows like taxes and paying salary do not do so but create an instant expense on the income statement, which then negatively impacts equity through retained earnings.

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