_____ is calculated by adding back noncash expenses to net income and adjusting for changes in current assets and liabilities.
A)Total cash flow
B)Capital spending
C)Net working capital
D)Cash flow from operations
E)Cash flow to creditors

Question

Quizplus · Accepted Answer

Cash flow from operations is calculated by adding back noncash expenses (such as depreciation) to net income and adjusting for changes in current assets and liabilities (such as accounts receivable and accounts payable). This calculation shows the amount of cash generated by a company's normal business operations.

_____ Is Calculated by Adding Back Noncash Expenses to Net