What Is the Operating Cash Flow, Given the Following Information

question 31

Multiple Choice

What is the operating cash flow, given the following information?
$\begin{array}{lrr} \text { Net income} &\$825\\ \text {Depreciation } &\$65\\ \text { Issuance of new stock} &\$20\\ \text { Repayment of long-term debt } &\$35\\ \text {Sale of old equipment } &\$40\\ \text { Purchase of new equipment} &\$60\\ \text { Dividend payments} &\$55\\ \text { Interest payments} &\$80\\\end{array}$

• A)$680
• B)$650
• C)$780
• D)$890
• E)$930

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Definitions:

Collecting

The process of gathering or accumulating items or the act of receiving payments owed to a business.

Classifying

The process of organizing financial information into categories for analysis, reporting, and decision making.

Summarizing

The process of presenting a concise overview or summary of specific information or data, such as the key points of a financial report.

Reporting

The process of organizing and presenting data, often financial, to provide insights into the performance of an entity.