Since EBIT is not necessarily indicative of cash flow, many financial analysts adjust the formulation by: a. adding unpaid taxes to EBIT in the TIE formula b. adding unpaid taxes and interest to EBIT in the formula c. adding depreciation to EBIT in the TIE formula d. adding unpaid taxes, interest, and depreciation to EBIT in the TIE formula
Since EBIT is not necessarily indicative of cash flow, many financial analysts adjust the formulation by: a. adding unpaid taxes to EBIT in the TIE formula b. adding unpaid taxes and interest to EBIT in the formula c. adding depreciation to EBIT in the TIE formula d. adding unpaid taxes, interest, and depreciation to EBIT in the TIE formula
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 8Q
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Since EBIT is not necessarily indicative of cash flow, many financial analysts adjust the formulation by:a. adding unpaid taxes to EBIT in the TIE formulab. adding unpaid taxes and interest to EBIT in the formulac. adding
depreciation to EBIT in the TIE formulad. adding unpaid taxes, interest, and depreciation to EBIT in the TIE formula
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