What Is the Formula for Computing Operating Cash Flow

question 39

Multiple Choice

What is the formula for computing operating cash flow?

• A)EBIT + Depreciation − Current taxes
• B)EBIT + Depreciation − Interest expense − Current taxes
• C)EBIT + NWC − Depreciation
• D)EBIT − Depreciation + Current taxes
• E)EBIT − Change in NWC + Depreciation − Current taxes

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Definitions:

Unconformity

A surface of contact between two groups of unconformable strata, indicating a period of erosion or non-deposition.

Monocline

A geological fold where all strata are inclined in the same direction, resembling a step-like structure in the landscape.

Thrust Fault

A type of geological fault where one block of the earth's crust is pushed up and over another, typically at a low angle, due to compressional forces.

Normal Fault

A normal fault is a type of fault where the hanging wall slides downward relative to the footwall due to tensional forces.