If all values carry a + sign, cash flow before taxes is represented by the following equation:a. gross income - expenses - depreciation - initial investment + salvage valueb. gross income - expenses - depreciation + salvage valuec. gross income - expenses - initial investment + salvage valued. gross income - expenses + initial investment + salvage value

Q: The formula to compute free cash flow is

A: Free cash flow is the available cash from operation which can be used to repay the debt obligation…

Q: In the calculation of cash flow from operating activities, the loss on the disposal of noncurrent…

A: When the company dispose any asset with a proceeds amount less than the book value of the asset ,…

Q: The depreciation cost is included in the cash flow analysis since it is a book cost Select one: True…

A: Financial Statement Analysis: Financial statement analysis is the most common way of dissecting an…

Q: Explain the below elements of cash outflows:  a- Purchase of New Equipment.  b- Investment in…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Cash outflows generated by capital investments include all of the following except:…

A: Cash flow generated by capital investment includes that is cash flow generated by all activities.

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: On the statement of cash flows, depreciation would be classified as? OA financing activity. O An…

A: A cash flow statement consists of 3 sections - operating, financing and investing

Q: Salvage value of a piece of equipment would show on the cash flow diagram as wha Select one: a.…

A: Salvage value is the disposal value of equipment at the end of life of project.

Q: Depreciation is incorporated in cash flows because it:  A. Is unavoidable cost B. Is a cash…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: What are the three (3) key inputs to the valuation process? Does the valuation process ONLY apply to…

A: Valuation Process refers to the steps involved in assigning an intrinsic value for different…

Q: Using the indirect technique, depreciation expenses are subtracted from net income before…

A: The indirect (addback) method begins by calculating net income on an accrual basis. Non-cash…

Q: Classify the following cash flows as either operating (O), investing (I), or financing (F)…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: All of the following are examples of cash inflows except: Select one: a. income taxes b. operating…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: asap Explain the below elements of cash outflows:  a- Purchase of New Equipment.  b- Investment in…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: The cash flow statement is helpful for the stakeholders that they can identify the organization's…

Q: Explain how did it get the value of depreciation, income taxation, NOPAT, and after-tax cash flow in…

A: Capital budgeting is the process through which various investments and capital projects are…

Q: Explain why depreciation, depletion, and amortization cost in the operational activities part of the…

A: The Answer

Q: While calc

A: Free cash flow is usually generated from its business operations after minus the capital expenditure…

Q: Using the indirect method to prepare a statement of cash flow, the amount of depreciation expense to…

A: Answer: d. The income statement only Explanation:- Cash flow statement is a statement prepared to…

Q: Which of the following should be added to net income in calculating net cash flow from operating…

A: Cash flows from operating activities is a section in cash flow statement which shows all income and…

Q: If an asset is sold at a gain why is the gain subtracted from net income when computing the net cash…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: computing net cash flows from operating activities using the indirect method, a gain on the sale of…

A: Cashflow Statement show cash inflow and outflow of cash during a particular period.  It consists of…

Q: The indirect approach subtracts depreciation costs from net income before calculating operating cash…

A: Given : The question explains about Using the indirect technique, depreciation expenses are…

Q: When completing the statement of cash flows using the indirect method, an increase in an asset…

A: Cash flows statement: To know the cash position of the company statement of cash flows are prepared.…

Q: Which of the following statements is CORRECT? O Free cash flow (FCF) is defined as follows: FCF…

A: The answer along with the reasons for incorrect options are provided below.

Q: tion exp

A: In the indirect (addback) method for calculating cash flows, the accrual basis net income is…

Q: One of the basic techniques used in evaluating after-tax operating cash flows is to Select one: a.…

A: The Net Income is calculated as the difference of the Revenues and Expenses , while calculating the…

Q: Which of the following should be deducted from net income in calculating net cash flow from…

A: To calculate net cash flow from operating activities using the indirect method, expenses or losses…

Q: Distinguish between annual income in the presence of depreciation and annual operating cash flow?

A: Meaning of Annual Income The total income earned by a business during an accounting period is known…

Q: Why you have not taken depreciation(deduct from profit and then add to obtain cash flows) into accou

A: Depreciation   is a admissible expenses  for taxation purpose i.e., tax will be calculated on the…

Q: he amount of accumulated depreciation fo O A. cash payments for selling and admi

A: The accumulated depreciation is the sum of the total depreciation expense incurred on a particular…

Q: In the statement of cash flows using indirect method, depreciation is treated as an adjustment to…

A: Depreciation expense represents the cost of tangible asset allocated over the useful life of asset.…

Q: Under the indirect method, depreciation expense is addedto net income to report cash flows from…

A: The indirect method helps the company to convert accrual basis of accounting to cash basis by…

Q: If a company reports positive net income for the year, can it also show a net cash outflow from…

A: The question is related to Cash Flow Statement. There are three activities in cash flow statement…

Q: Depreciation and amortization are added back in computing operating cash flows because: a They…

A: Cash Flow statement is just a detailed cash account. It shows how changes in balance sheet and…

Q: What section of the cash flow statement would you find a purchase of manufacturing equipment? a.…

A: When there is purchase and sale of long term fixed assets, then it belongs to investing activity of…

Q: To account for cash flows from operational operations, the indirect method adds depreciation…

A: Here is the Answer

Q: When calculating the cash flows from operating activities which of the following statements is true?…

A: Cash flows from operating activities states that how much cash comes into the business and went out…

Q: Which of the following will be reflected in the "Cash flows from operating activities" of a…

A: Cash flow from the operating activities refers to the inflows and outflows of the cash in the entity…

Q: In the operating activities portion of the statement of cash flows when utilizing the indirect…

A: While calculating Cash flow from Operations using Indirect Method, the starting point is Net Income…