What is the equation for estimating operating cash flows (OCF) using the top-down approach? Multiple choice question. OCF = Sales − Costs − Taxes OCF = Sales − Costs OCF = EBIT − Depreciation + Taxes OCF = EBIT + Depreciation

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 14MCQ
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What is the equation for estimating operating cash flows (OCF) using the top-down approach?

Multiple choice question.

OCF = Sales − Costs − Taxes

OCF = Sales − Costs

OCF = EBIT − Depreciation + Taxes

OCF = EBIT + Depreciation

 

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