Which of the following statements is most correct? O Depreciation is the charge

Question

Which of the following statements is most correct? O Depreciation is the charge to reflect the cost of assets depleted in the production process. Depreciation is a cash outlay Net operation Net operation profit after taxes is a profit a company would generate subtracting all interest expenses from it operating income. Free cash flow is the amount of cash that could be withdrawn without harming a firm's ability to operate and to produce future cash flows. profit after taxes is a profit a company would generate if it had large amount of debt and held non-operating assets tement of stockholders' equity shows by how much a firm total assets equity has changed during the year and why this change occurred

Explanation / Answer

Free cash flows = Operating cash flows – Investment in net working capital – Investment in fixed assets

Increase in net working capital and investment in fixed assets are required for future expected growth rates for firm operations.

Hence, correct option is “Free cash flows is the amount of cash flows that could be with drawn”

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