Which of the following adjustments should NOT be made when computing free cash flow from incremental earnings?
A)adding depreciation
B)subtracting all non-cash expenses
C)subtracting increases in Net Working Capital
D)subtracting depreciation expenses from taxable earnings

Question

Quizplus · Accepted Answer

Depreciation expenses are already adjusted in incremental earnings and should not be subtracted again when computing free cash flow from incremental earnings.

Which of the Following Adjustments Should NOT Be Made When