How Is Net Cash Flow Calculated If Depreciation Is the Only

question 87

Multiple Choice

How is net cash flow calculated if depreciation is the only noncash item in a firm's income statement?

• A) Net cash flow = Net income + Depreciation and amortization
• B) Net cash flow = Accounting profit - Depreciation and amortization
• C) Net cash flow = Accounting profit - Operating cash flow
• D) Net cash flow = Fixed assets + Depreciation and amortization
• E) Net cash flow = Operating cash flow - Depreciation and amortization