________ is calculated by adding back noncash expenses to earnings before interest and taxes,subtracting taxes,and adjusting for any changes in total assets or current liabilities that affect cash flows.
A)Distributable cash flow
B)Capital spending
C)Cash flow from assets
D)Cash flow from investing activities
E)Cash flow to creditors

Question

Quizplus · Accepted Answer

Distributable cash flow is calculated by adjusting earnings before interest and taxes for noncash expenses, subtracting taxes, and adjusting for changes in total assets or current liabilities that affect cash flows. This measure helps investors determine the amount of cash available to distribute to shareholders or to invest in growth opportunities. Capital spending and cash flow from investing activities are related to the purchase and sale of assets, while cash flow to creditors measures the cash payments made to lenders. Cash flow from assets is a broader measure that includes cash generated from operating, investing, and financing activities.

________ Is Calculated by Adding Back Noncash Expenses to Earnings