Which of the following identities is TRUE?
A)Operating Cash Flow = EBIT + Depreciation - Taxes
B)Net Capital Spending = Ending Net Fixed Assets - Depreciation
C)Change in Net Working Capital (NWC)= Current Assets - Current Liabilities
D)Cash Flow from Assets = Operating Cash Flow + Net Capital Spending

Question

Quizplus · Accepted Answer

Operating Cash Flow is calculated as EBIT (Earnings Before Interest and Taxes) plus Depreciation minus Taxes, as it represents the cash generated from operations after accounting for tax expenses and adding back non-cash depreciation.

Which of the Following Identities Is TRUE