Inc.recently reported net income of $4,750 and depreciation of $885.How much was its net cash flow, assuming it had no amortization expense and sold none of its fixed assets.

Question

Quizplus · Accepted Answer

Net cash flow is calculated by adding net income and depreciation and subtracting any changes in working capital or capital expenditures. Since there is no information given about working capital or capital expenditures, we can assume they are zero. Therefore, net cash flow = net income + depreciation = $4,750 + $885 = $5,635.00. The correct answer is D.

IncRecently Reported Net Income of $4,750 and Depreciation of $885