Question

Which of the following equations describes a firm's net cash flow from operating activities?

a.Net cash flow - Net income - Non-cash revenues + Non-cash expenses
b.Net cash flow - Operating income - Depreciation
c.Net cash flow - Increase in Fixed Assets - Decrease in fixed assets
d.Net cash flow - Revenues - Expenses

Answer 1

The equation that describes a firm's net cash flow from operating activities is Net cash flow - Operating income - Depreciation.

Step-by-step explanation:

The equation that describes a firm's net cash flow from operating activities is Net cash flow - Operating income - Depreciation. This equation takes into account the cash flow generated from the firm's operating activities, such as sales revenue and expenses, and subtracts the operating income (profit) and depreciation of assets.