Question: Pick TWO the following questions to answer. Clearly label which questions you're answering. 1. What is liquidity, and why does it matter to a business?

 Pick TWO the following questions to answer. Clearly label which questions

Pick TWO the following questions to answer. Clearly label which questions you're answering. 1. What is liquidity, and why does it matter to a business? 2. When we are doing financial analysis, why do we calculate OCF as a measure of profit for a given year instead of just using net income (which is the accounting measure of profit) from the income statement? 3. What is net working capital (NWC)? How is NWC calculated? 4. Why should we ignore interest expenses to calculate cash flows for financial analysis? 5. Why do we ignore depreciation when we calculate cash flow from capital spending? 6. When net working capital (NWC) increases, is that a positive or negative cash flow? Why

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