Assume a Firm Has No Interest Expense or Extraordinary Items

Multiple Choice

Assume a firm has no interest expense or extraordinary items.Given this,the operating cash flow can be computed as:

A) EBIT − Taxes.
B) EBIT(1 − Tax rate) + Depreciation(Tax rate) .
C) (Sales − Costs) (1 − Tax rate) .
D) EBIT − Depreciation + Taxes.
E) Net income + Depreciation.