Industrial Incorporated has the following account balances: COGS = 4,000; Depreciation = 500; Interest = 250; rent = 1,000; Salaries = 3,000; Sales = 10,000, Taxes = 350. Industrial Incorporated's Operating Cash Flow is _______   Question 13 options:   $900   $1,250   $1,500   $1,650   $1,400

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Industrial Incorporated has the following account balances: COGS = 4,000; Depreciation = 500; Interest = 250; rent = 1,000; Salaries = 3,000; Sales = 10,000, Taxes = 350. Industrial Incorporated's Operating Cash Flow is _______
 

Question 13 options:

 
$900
 
$1,250
 
$1,500
 
$1,650
 
$1,400
Expert Solution
Step 1

Operating Cash Flow:

  • It represents the cash flows produced by the company from its regular business operations.
  • Thus, it is an indication of whether the firm is capable of generating sufficient positive cash flow to sustain and grow operations.

 

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