The EBIT is $20,000, depreciation is $5,000, and taxes are $3,000. Wha
The EBIT is $20,000, depreciation is $5,000, and taxes are $3,000. What is the operating cash flow (OCF)?
A) $25,000
B) $22,000
C) $14,000
D) $28,000
ANSWER
Answer: B
Explanation: B) OCF = EBIT + Depreciation – Taxes = $20,000 + $5,000 – $3,000 = $22,000.
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