Quiz Ch 03 – T/F Emphasis on Cash Flows and Free Cash Flow Calculation
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: In the realm of finance, the emphasis often lies on cash flows rather than accounting profits. Free cash flow (FCF) is derived by adding after-tax operating income and depreciation and then subtracting the combination of capital expenditures and changes in net operating working capital.