Cash flow from assets is equal to:
A) Operating cash flow minus net new equity plus net new borrowing.
B) Cash flow to creditors minus cash flow to stockholders.
C) Operating cash flow minus the change in net working capital minus net capital spending.
D) Operating cash flow plus net capital spending minus the change in net working capital.
E) Operating cash flow minus depreciation plus taxes.

Question

Quizplus · Accepted Answer

Cash flow from assets is calculated as operating cash flow minus the change in net working capital minus net capital spending. This formula represents the total cash flow generated by the company's assets, after accounting for the cash spent on operating expenses, changes in working capital, and investments in capital assets.

Cash Flow from Assets Is Equal To