An increase in which one of the following will cause the operating cash flow to increase for a profitable firm?
A)Depreciation
B)Cash
C)Net working capital
D)Taxes
E)Administrative expenses

Question

Quizplus · Accepted Answer

An increase in depreciation will cause the operating cash flow to increase for a profitable firm because depreciation is a non-cash charge that reduces taxable income, leading to lower taxes and thus higher after-tax cash flow.

An Increase in Which One of the Following Will Cause