Al's has a positive net income and a tax rate of 34 percent.Given this,an increase in which one of the following will cause the operating cash flow to increase?

Question

Quizplus · Accepted Answer

An increase in depreciation will result in a decrease in taxable income, since depreciation is a non-cash expense. This will lead to lower tax payments, which will result in an increase in operating cash flow.

Al's Has a Positive Net Income and a Tax Rate