Financial Reporting and Analysis Q152
0. To compute operating cash flow from net income, we start with net income:
- A
add non-cash charges such as depreciation, subtract the increase in current operating liabilities and add the increase in current operating assets.
- B
add non-cash charges such as depreciation, add the increase in current operating liabilities and subtract the increase in current operating assets.
- C
subtract non-cash charges such as depreciation, add the increase in current operating liabilities and subtract the increase in current operating assets.
- Option : B
- Explanation : To compute operating cash flow from net income, we start with net income, add non-cash charges such as depreciation, add the increase in current operating liabilities and subtract the increase in current operating assets.
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