Thompson's Jet Skis has operating cash flow of $11,618.Depreciation is $2,345 and interest paid is $395.A net total of $485 was paid on long-term debt.The firm spent $6,180 on fixed assets and decreased net working capital by $420.What is the cash flow of the firm?

Question

Quizplus · Accepted Answer

The correct answer is A because the cash flow of the firm is calculated by adding the operating cash flow, depreciation, and interest paid, and then subtracting the net total paid on long-term debt, the amount spent on fixed assets, and the decrease in net working capital.

Thompson's Jet Skis Has Operating Cash Flow of $11,618