Free cash flow to equity is calculated using operating income.
举一反三
- Identify which of the followingadjustments to after-tax operating income is used to approximate cash income.
- Net income is $500m, depreciation is $100m, capital expenditures and debt repayment is $50m and $150m respectively. What is the amount of free cash flow to equity?
- Which of the following items is included in the adjustment of net income to obtain cash flow from operating activities? ( ) A: Depreciation expense for the period. B: dividend C: The amount by which equity income recognized exceeds cash received. D: The change in deferred taxes.
- Identify which of the followingadjustments to after-tax operating income is used to approximate cash income. A: expensing research and development costs B: using LIFO valuation C: deducting interest payable D: using taxes paid rather than tax expense
- Which of the following is NOT a reason why cash flow may not equal net income? A: Amortization is added in when calculating net income. B: Changes in inventory will change cash flows but not income. C: Capital expenditures are not recorded on the income statement. D: Depreciation is deducted when calculating net income.