Asked by
brooke cormier
on Nov 08, 2024Verified
Operating cash flow can be computed as:
A) Net income minus depreciation plus taxes.
B) Cash flow from assets plus net capital spending plus the change in net working capital.
C) Net income plus depreciation.
D) Earnings before interest and taxes plus depreciation minus taxes.
E) Earnings before interest and taxes plus depreciation and interest, minus taxes.
Operating Cash Flow
The cash generated from a company's normal business operations before financing and investment activities.
Net Capital Spending
The total expenditure on fixed assets less any sales of fixed assets during a given period, often used in assessing a company's investment in physical assets.
Earnings Before Interest And Taxes
A financial performance measure that calculates a company's profitability by excluding interest and taxes expenses.
- Calculate and interpret operating cash flow.
Verified Answer
RL
Learning Objectives
- Calculate and interpret operating cash flow.