Depreciation expenses should be added to after-tax ebit to get operating cash flows because it is a non-cash charge deducted from revenue in the net income calculation.
Cash flow is the movement of money, real or virtual. Strictly speaking, cash flows are specifically payments from one central bank account to another. The term "cash flow" is most commonly used to describe cash flow. Cash flow refers to the net balance of cash entering or exiting a company at a particular point in time.
Cash flows in and out of business all the time. For example, when a retailer purchases inventory, money flows from the store to the supplier.
Learn more about cash flows here: brainly.com/question/735261
#SPJ4
Answer:
The free cash flow that Wells generated is $2050.
Explanation:
EBIT = sales - operating costs - depreciation
= $8,250 - $4,500 - $950
= $2,800
free cash flow
= EBIT(1 - t) + depreciation - investment in fixed assets - investment in NOWC
= $2100 + $950 - $750 - $250
= $2050
Therefore, The free cash flow that Wells generated is $2050.
Answer:
Spend $25000 on cyber insurance to transfer the risk
Explanation:
A cyber insurance is the best option since it protects the business from internet based risk such as the breach of customer database and other risks involved in the use of the internet by businesses and individual internet users.
The cost of purchasing a Data Loss Prevention solution that would cost $30000 per year will amount to $150000 in 5 years which will be more expensive compared to the cost of the risk it is been used to prevent. hence it is not a good option. also accepting the risk is a very bad option becasue the risk might harm the business beyond expectation.
Answer: $25
Explanation: Dividends are the returns the shareholders of the company get for investing the the company and bearing the risk and it is calculated as follows :-
Dividend = (value of share) * (rate of return)
Here we have,
Dividend = $5
rate of return = 20%
Therefore,
= $25
Answer:y costs $d life of 1010 years (SV10equals=$35 comma 00035,000). a. D490 comma 000490,000 and has a
wling alley costs $490 comma 000490,000 and has an estimated life of 1010 years (SV10equals=
Explanation:etermine the
wling alley costs $490 comma 000490,000 and has an estimated life of 1010 years (SV10equals=$35 comma 00035,000). a. Determine t
