To get the operating cash flow, given the net income, we add back ________. EBIT depreciation...
To get the operating cash flow, given the net income, we add back ________.
EBIT
depreciation
cost of goods sold
taxes
Homework Answers
B. depreciation
To get the operating cash flow, given the net income, we add back depreciation.
Operating cash flow = Net income + Depreciation
Answer :
Depreciation.
For calculating net income we consider certain non-cash expenses like depreciation. Non-cash expenses do not affect operating cash flow and cash status. Hence, we add back depreciation to net income to find out the operating cash flow.
Add Answer to:
To get the operating cash flow, given the net income, we add
back ________.
EBIT
depreciation...
Module For operating cash flow I used net income + depreciation but my professor states that...
Module For operating cash flow I used net income + depreciation but my professor states that is the wrong answer. Is there another way to calculate operating cost? If so can you please show me and explain? Thank you Sales 1,100,000 1,100,000 Operating costs (excluding depreciation) 1100000.000 0.70 770,000.00 EBITDA 1100000.000 770,000 330,000.000 Depreciation 205,000 0.15 30,750.00 EBIT 330,000 30,750 299,250 Interest Expense 100,000 EBT 299,250 100,000 199,250 Taxes*** 60957.5 60,958 Net Income 199,250 60,958 138,292 Common Dividends 110634 11,064...
Net Cash Flows The Moore Corporation has operating income (EBIT) of $850,000. The company's depreciation expense...
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OCF=operating cash flow NCS-net capital spending NWC= net working capital CFS=cash flow to shareholders CFC=cash flow...
OCF=operating cash flow
NCS-net capital spending
NWC= net working capital
CFS=cash flow to shareholders
CFC=cash flow to creditors
FCF=free cash flow
1. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement 2019 Revenues $20,000 Cost of Goods Sold $10.000 Other operating expenses $1,000 Depreciation expense $3.000 EBIT $6,000 Interest Expense $3,200 Taxable income $2.800 Taxes $840 Net income...
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5. Refer to the Income Statement below. What is the operating cash flow for 2017? ABC...
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1. In 2017, Johnson Furniture had $5 in operating income (EBIT). The firm had a net...
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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
$196,600 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:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
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 $161,000 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 $3,100 Decrease in inventories 7,900 Depreciation 12,100 Gain on sale of investments 5,400 Increase in accounts payable 2,200 Increase...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow...
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The blank has the options (net income or net cash flow) 3. Net cash flow You...
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3. Net cash flow You are Olivia, a financial analyst who works for an investment bank in downtown Denver, Colorado You are analyzing the current cash condition of CansAndString Telecomm. You've collected the following information from the company's financial reports: • The company just reported net sales of $5,000,000. Assume that there are no noncash sales. • The operating costs (excluding depreciation and amortization) are 65% of the company's...
Net Cash Flows The Moore Corporation has operating income (EBIT) of $850,000. The company's depreciation expense is $150,000. Moore is 100% equity financed, and it faces a 35% tax rate. What is the company's net income? Round your answer to the nearest dollar What is its net cash flow? Round your answer to the nearest dollar.
OCF=operating cash flow
NCS-net capital spending
NWC= net working capital
CFS=cash flow to shareholders
CFC=cash flow to creditors
FCF=free cash flow
1. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement 2019 Revenues $20,000 Cost of Goods Sold $10.000 Other operating expenses $1,000 Depreciation expense $3.000 EBIT $6,000 Interest Expense $3,200 Taxable income $2.800 Taxes $840 Net income...
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $201,300 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 Decrease in inventories $4,500 11,200 17,300 7,800 Depreciation Gain on sale of investments Increase in accounts payable 3,100 Increase...
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Determining Net Income from Net Cash Flow from Operating
Activities
Curwen Inc. reported net cash flow from operating activities of
$196,600 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:
Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash flow from operating activities of $196,600 on its statement...
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The blank has the options (net income or net cash flow)
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