A Firm Has Operating Income of $1,000, Depreciation Expense of $185

question 66

Multiple Choice

A firm has operating income of $1,000, depreciation expense of $185, and its investment in operating capital is $400. The firm is 100 percent equity financed and has a 35 percent tax rate. What is the firm's operating cash flow?

• A) $725
• B) $795
• C) $835
• D) $965

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Definitions:

Educational Achievement

The extent to which a student, teacher, or institution has achieved their short or long-term educational goals.

Reverse Causality

A situation where it is unclear whether A causes B or B causes A, challenging assumptions about cause and effect relationships.

Construct Validity

The extent to which a test or tool accurately measures what it is intended to measure, and the degree to which it can be said to truly assess the theoretical construct it purports to measure.

Social Psychologists

Scientists or researchers who study how an individual's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.