Question

Which one of the following is the definition of operating cash flow? Multiple Choice revenue minus...

Which one of the following is the definition of operating cash flow?

Multiple Choice

  • revenue minus expenses

  • cash realized from the sale of assets

  • cash flow originating from the issuance of securities

  • cash generated by a firm's normal business activities

  • pre-tax income

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

I have answered the question below

Please up vote for the same and thanks!!!

Do reach out in the comments for any queries

Answer:

Operating cash flow is a way of computing the surplus of cash generated by a company's normal business operations. OCF indicates whether a company can generate sufficient positive cashflows to run the long term business operations

Other options are incorrect as EBIT is pre-tax income. Cash flow from financing activities is issuance of securities..Cash flow from investing is the sale of assets

Hence cash generated by a firm's normal business activities

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following statements regarding cash flow is correct? Multiple Choice Cash flow measures changes...
Which of the following statements regarding cash flow is correct? Multiple Choice Cash flow measures changes in the firm's cash account. After-tax cash flow is usually identical to accounting profits when accrual accounting is used for financial statement purposes. In evaluating capital budgeting decisions, cash flows should be valued on a pre-tax basis for consistency's sake. Incremental cash flows should include opportunity costs but ignore sunk costs. Cash flow should be recognized only when it has accrued according to GAAP...
Determine the Investment cash flow, Operating cash flow, and Net cash flow based on the following...
Determine the Investment cash flow, Operating cash flow, and Net cash flow based on the following assumptions. Initial investment of $120,000 to purchase and install a piece of equipment for an expansion project, 5 year straight line depreciation, $10,000 sale of equipment at the end of five years. The new equipment will increase pre tax revenue by $100,000 annually and increase operating expenses by $25,000 annually. The tax rate is 30%
Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 4,650 Interest on investments...
Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 4,650 Interest on investments 390 Sale of land 290 Sale of Rowdy's common stock 980 Issuance of debt securities 3,900 Cash paid for: Interest on debt $ 490 Income tax 270 Debt principal reduction 3,400 Purchase of equipment 7,800 Purchase of inventory 2,900 Dividends on common stock 770 Operating expenses 880 Rowdy's would report net cash inflows (outflows) from investing activities in the amount of: Rowdy's Restaurants cash...
Mach each cash flow to the section of the Statement of Cash Flows in which it...
Mach each cash flow to the section of the Statement of Cash Flows in which it would appear. Payment of Long-Term Debt Issuance of Stock to Acquire Land    Collection of Accounts Receivable .    Sale of Available-for-Sale Securities (Long Term) Payment of Employees' Wages Issuance of Common Stock for Cash Payment of Income Taxes Payable    Purchase of Equipment    Purchase of Treasury Stock (Common) 1. Cash Provided/Used by Financing Activities 2. Cash Provided/Used by Investing Activities 3. Cash...
Indicate whether each of the following items would result in net cash flow from operating activities...
Indicate whether each of the following items would result in net cash flow from operating activities being higher (H) or lower (L) than net income. a. Increase in accounts payable b. Amortization expense c. Decrease in accrued liabilities d. Loss on sale of assets e. Decrease in accounts receivable f. Decrease in deferred tax assets g. Increase in deferred revenue h. Decrease in income taxes payable i. Decrease in prepaid expenses
1. Which of the following is correct for the Cash Flow Statement(CFS) A .An increase in...
1. Which of the following is correct for the Cash Flow Statement(CFS) A .An increase in Accounts Receivable is a source of cash and should be in the CFS Investing Activities B. A payment of long term notes payable is a use of cash and should be in the CFS Financing Activities C. Deduct non cash expenditures from Net Income in the Operating Activities of the CFS D. A paid cash dividend is a use of cash and should be...
5. Operating cash flow by multiple approaches The estimated revenue from any investment was $175,000, the...
5. Operating cash flow by multiple approaches The estimated revenue from any investment was $175,000, the cost was $93,000 and the depreciation cost was $24,800. The tax rate is 23%. Use four different approaches to get the operating cash flow and see if they have the same results.
1/ Both the direct method and the indirect method of computing net cash flow from operating...
1/ Both the direct method and the indirect method of computing net cash flow from operating activities convert accrual-based income statement amounts into cash flows. TRUE/ FALSE 2/ Under the indirect method, when machinery is sold at a gain, the gain is added in the operating section of the statement of cash flows and the cost is added in the investing section. TRUE/FALSE 3/ All of the following are financing activities except: Multiple Choice * 

Selling capital stock.
 * 

Lending...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $216,900 on its statement of cash flows for the year ended December 31. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method: Decrease in income taxes payable $4,800 Decrease in inventories 12,000 Depreciation 18,400 Gain on sale of investments 8,300 Increase in accounts payable 3,300 Increase...
Which of the following transactions is included in the operating activities section of a cash flow...
Which of the following transactions is included in the operating activities section of a cash flow statement prepared using the indirect method? 1) Gain on sale of plant asset 2) Sale of property, plant and equipment 3) Payment of cash dividend to the shareholders 4) Issuance of common stock to the shareholders
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT