Asked by

Matthew Beauchamp
on Nov 08, 2024

verifed

Verified

Canadian Enterprises had earnings before interest and taxes (EBIT) of $865, depreciation of $120 and taxes of $180. Given this information, calculate OCF.

A) $825
B) $815
C) $805
D) $795
E) $765

Earnings Before Interest And Taxes

A gauge of corporate profit that disregards expenses related to interest and income tax.

OCF

Operating Cash Flow, which is the cash generated from normal business operations, indicating a company's ability to generate sufficient positive cash flow to maintain and grow its operations.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

  • Comprehend the influence of operating cash flow on the financial well-being of a company.
verifed

Verified Answer

KM
Kimberly MarksNov 08, 2024
Final Answer:
Get Full Answer