Janex Corporation had OCF of $250, net capital spending of $500 and change in net working capital of $150. Given this information, determine its cash flow from assets.
A) $400
B) $800
C) $(400)
D) $(800)
E) $150

Question

Quizplus · Accepted Answer

Cash flow from assets can be calculated as OCF - Net Capital Spending - Change in Net Working Capital. Therefore, it's $250 - $500 - $150 = -$400.

Janex Corporation Had OCF of $250, Net Capital Spending of $500