Which of the Following Equation Is Correct

question 173

Multiple Choice

Which of the following equation is correct?

• A) EBIT + depreciation - taxes = OCF
• B) Ending net fixed assets + depreciation = Net capital spending
• C) Current assets - current liabilities = Change in net working capital
• D) Operating cash flow + net capital spending = Cash flow from assets
• E) EBIT - Depreciation + Taxes = OCF

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Definitions:

Last Year's Margin

The difference between sales revenue and cost of goods sold from the previous financial year, typically expressed as a percentage of sales.

Division's Turnover

The total revenue generated by a specific division of a company within a given period.

Last Year's Turnover

The total sales or revenues generated by a company during the previous year.

Net Operating Income

The profit generated from a company's usual business operations, excluding taxes and interest.