Cash flow from operations = (revenues - cash expenses)* (1 - tax rate)+ (depreciation * tax rate).

Name: Cash flow from operations = (revenues - cash expenses)* (1 - tax rate)+ (depreciation * tax rate).
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Question

Quizplus · Accepted Answer

This formula is the correct formula for calculating cash flow from operations, where revenues are reduced by cash expenses and multiplied by the (1 - tax rate) factor, and then depreciation is added back and multiplied by the tax rate.

Cash Flow from Operations = (Revenues - Cash Expenses)* (1