Maxson, Inc.'s revenues are collected when they are earned and its operating expenses are paid when they are incurred.Which of the following summarizes the calculation of operating cash flows if the income tax rate is 30%?

Question

Quizplus · Accepted Answer

Operating cash flows are calculated by starting with revenues, subtracting operating expenses and income taxes, and adding back non-cash expenses like depreciation. This approach aligns with the direct method of calculating cash flows from operating activities.