Which of the following is true regarding the cash flows of a firm?

Question

Quizplus · Accepted Answer

All the statements provided are true regarding the cash flows of a firm. Depreciation, while a non-cash expense, increases cash flows by reducing taxable income. Loan repayments are cash outflows in the financing activities section. The sale of new shares increases financing cash flows. Operating cash flow is indeed net income plus depreciation, as depreciation is added back to net income in the cash flow from operations calculation.

Which of the Following Is True Regarding the Cash Flows