Net Annual Cash Flow Can Be Estimated by

question 69

Multiple Choice

Net annual cash flow can be estimated by

• A) deducting credit sales from net income.
• B) adding depreciation expense to net income.
• C) deducting credit purchases from net income.
• D) adding advertising expense to net income.

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Definitions:

Sales Volume

The quantity of goods or services sold or delivered in a given period.

Sensitivity Analysis

A way of assessing how the modification of an independent variable's values affects a dependent variable, under a specific set of hypotheses.

Rate Of Return

The positive or negative change in an investment's value over a certain period, expressed in terms of a percentage of the investment’s beginning cost.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable.