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:

Activity-Based Management

A management strategy focusing on identifying and analyzing activities that lead to cost improvement and business performance enhancement.

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives.

Inputs

The resources used in the production process, including raw materials, labor, and capital.

Process Flow Chart

A visual representation of the steps in a process, showing how tasks or operations are connected.