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Assuming the indirect method for preparing the statement of cash flows is used, indicate whether these items should be added to net income (A) , deducted from net income (D) , or not be reported in the operating section of the statement under the indirect method (NR) .
-Purchase of new factory equipment
Deadweight Loss
The diminishing of economic efficiency when equilibrium in the free market for a product or service is not attained.
Benevolent
Showing kindness or goodwill, often characterized by acts of generosity or concern for others.
Monopoly Firm
A business that is the sole provider of a good or service in a market, facing no competition, which can lead to higher prices and inefficiencies.
Barrier to Entry
Factors or conditions that prevent new competitors from easily entering an industry or area of business.
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