A firm had EBIT of $1,000, paid taxes of $225, expensed depreciation at $13, and its gross fixed assets increased by $25. What was the firm's operating cash flow?

Name: A firm had EBIT of $1,000, paid taxes of $225, expensed depreciation at $13, and its gross fixed assets increased by $25. What was the firm's operating cash flow?
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Question

Quizplus · Accepted Answer

Operating cash flow is calculated as EBIT + Depreciation - Taxes. So, $1,000 + $13 - $225 = $788. The increase in gross fixed assets is not included in this calculation.

A Firm Had EBIT of $1,000, Paid Taxes of $225