Opposed to financing and investing


Problem:

Why is operating cash so important, as opposed to financing and investing? If Apple were to take $2 billion this year and invest in R&D at the company, how would this impact the Cash Flow Statement? What if instead of R&D they bought another company (with new products) for $2 billion?

Note: Provide support for your rationale.

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Accounting Basics: Opposed to financing and investing
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