#9. Why do capital expenditures increase assets (PP&E = Property, Plant & Equipment), while other...
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#9. Why do capital expenditures increase assets (PP&E = Property, Plant & Equipment), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings ? Is it possible for a company to show positive cash flows but be in grave trouble? How is it possible for a company to show positive net income but go bankrupt
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