What Is the Amount of the Operating Cash Flow for a Firm

question 34

Multiple Choice

What is the amount of the operating cash flow for a firm with $500,000 profit before tax, $100,000 depreciation expense, and a 35% marginal tax rate?

• A) $260,000
• B) $325,000
• C) $360,000
• D)$425,000

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock.

Income Statements

A financial statement that shows a company's revenues, expenses, and net income over a specific period, summarizing its financial performance.

Stock Dividends

Stock dividends are a form of dividend payment made by a corporation to its shareholders in additional shares of stock, instead of cash.

Cash Dividends

A portion of a company's earnings distributed to its shareholders as a form of payment or reward.