An increase in which one of the following will increase operating cash flow for a profitable, tax-paying firm?
A)Fixed expenses
B)Marginal tax rate
C)Net capital spending
D)Inventory
E)Depreciation

Question

Quizplus · Accepted Answer

An increase in depreciation will increase operating cash flow because depreciation is a non-cash expense that reduces taxable income, thus reducing taxes paid and increasing cash flow.

An Increase in Which One of the Following Will Increase