This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following identities is TRUE? A) Operating Cash Flow = EBIT + Depreciation - Taxes ... (Read 99 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
on: Jul 10, 2018
Which of the following identities is TRUE?
 
  A) Operating Cash Flow = EBIT + Depreciation - Taxes
  B) Net Capital Spending = Ending Net Fixed Assets - Depreciation
  C) Change in Net Working Capital (NWC) = Current Assets - Current Liabilities
  D) Cash Flow from Assets = Operating Cash Flow + Net Capital Spending

Question 2

Which one of the answers below is NOT one of the three components of the Cash Flow from Assets?
 
  A) Operating Cash Flow
  B) Net Capital Spending
  C) Noncash Expenses
  D) Change in Net Working Capital


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ms_sulzle

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A
Explanation: A) Net Capital Spending = Ending Net Fixed Assets - Beginning Net Fixed Assets + Depreciation
Change in Net Working Capital (NWC) = Ending NWC - Beginning NWC
Cash Flow from Assets = Operating Cash Flow - Net Capital Spending - Change in NWC

Answer to Question 2

Answer: C


karateprodigy

  • Member
  • Posts: 550
Reply 2 on: Jul 10, 2018
:D TYSM

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Cyclic electron flow. Cyclic electron flow.
Respiratory Assistive Devices, Patient Using a Peak Flow Meter Respiratory Assistive Devices, Patient Using a Peak Flow Meter
Blood flow before TIPS Blood flow before TIPS
Flow Patterns and Large-Scale Weather: The Steering of Midlatitude Cyclones Flow Patterns and Large-Scale Weather: The Steering of Midlatitude Cyclones
Diagram of Cross Flow Air Dryer Diagram of Cross Flow Air Dryer
Entrepreneurship: Starting and Operating a Small Business (3rd Edition) Entrepreneurship: Starting and Operating a Small Business (3rd Edition)
Video: Anaphylaxis Animation

For a complete list of videos, visit our video library