An increase in which one of the following will cause the operating cash flow to increase?
A)Change in net working capital
B)Taxes
C)Net working capital
D)Costs
E)Depreciation

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that reduces reported profits, but does not require any outflow of cash. Therefore, adding depreciation back to net income in the operating cash flow calculation will result in an increase in operating cash flow.

An Increase in Which One of the Following Will Cause