If you start with earnings before interest and taxes and then subtract a firm's tax expense while adding back the amount of depreciation expense for the firm during the year,the resulting figure is called

Question

Quizplus · Accepted Answer

The resulting figure is called operating cash flow. It represents the cash generated by the firm's operating activities, after accounting for tax liabilities and non-cash expenses like depreciation. Free cash flow, on the other hand, represents the cash available for distribution to investors after all expenses and investments have been made. Net cash flow refers to the difference between cash inflows and outflows, while gross cash flow is the total amount of cash generated by a business or investment.

If You Start with Earnings Before Interest and Taxes and Then