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leannaadrian
26.08.2020 •
Business
To find operating cash flow for the business for the year, add depreciation expense to EBIT and then . Question 8 options: A) subtract the interest expenses B) subtract the taxes C) add the taxes D) add interest expenses
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Ответ:
B) subtract the taxes
Explanation:
The formula to compute the operating cash flow is shown below
The operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
where,
EBIT = Sales - cost of good sold - depreciation expense
Also the operating cash flow refers to the cash amount i.e. created through the day to day activities within a particular period
Hence, the correct option is b.
Ответ: