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.
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.
举一反三
- Which the following is included in the computation of operating cash flow? A: Depreciation B: Interest paid C: Earnings before interest and taxes D: Current taxes
- Which of the following statements regarding depreciation expense in the cash flow statements is TRUE Depreciation is: A: added back to net income when determining CFO using the direct method. B: added back to net income when determining CFO using the indirect method. C: considered a cash item.
- 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.
- 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 is required in order to calculate the operating cash flow? A: EBIT B: depreciation C: taxes D: interest