Which of the Following Needs to Be Done in Order

question 35

Multiple Choice

Which of the following needs to be done in order to convert net income to a number that is closer to cash flow?

• A)subtract capital expenditures and the depreciation expense from net income
• B)add capital expenditures to net income and subtract the depreciation expense from net income
• C)subtract capital expenditures from net income and add the depreciation expense to net income
• D)add back capital expenditures and the depreciation expense to net income

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