_____ is calculated by adding back non-cash expenses to net income and adjusting for changes in current assets and liabilities.
A)Cash generated from operations
B)Capital spending
C)Net working capital
D)Cash ﬂow from operating activities
E)Cash ﬂow to creditors

Question

Quizplus · Accepted Answer

Cash flow from operating activities is calculated by adding back non-cash expenses (such as depreciation and amortization) to net income and adjusting for changes in current assets and liabilities (such as accounts receivable, inventory, accounts payable, and accrued expenses). This calculation shows how much cash is generated or used by a company's core operations.

_____ Is Calculated by Adding Back Non-Cash Expenses to Net