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
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  1. 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
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