{"id":52821,"date":"2024-04-15T23:44:58","date_gmt":"2024-04-15T23:44:58","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=52821"},"modified":"2024-04-15T23:44:58","modified_gmt":"2024-04-15T23:44:58","slug":"gross-fixed-asset-expenditures-is-rs-6000-and-free-cash-flow-is-rs-8000-then-operating-cash-flows-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/gross-fixed-asset-expenditures-is-rs-6000-and-free-cash-flow-is-rs-8000-then-operating-cash-flows-will-be\/","title":{"rendered":"Gross fixed asset expenditures is Rs 6000 and free cash flow is Rs 8000 then operating cash flows will be"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a975127aa5de\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    -Rs 14,000.00                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    Rs 2,000.00                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Rs 14,000.00                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    -Rs 2,000.00                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is B. Rs 2,000.00.<\/p>\n<p>Operating cash flow is the cash generated from a company&#8217;s core business activities. It is calculated by taking net income and adding back non-cash expenses, such as depreciation and amortization. Gross fixed asset expenditures are the amount of money a company spends on new or replacement fixed assets, such as property, plant, and equipment. Free cash flow is the cash that a company has available after it has paid for its operating expenses, capital expenditures, and debt service.<\/p>\n<p>To calculate operating cash flow, we can use the following formula:<\/p>\n<p>Operating cash flow = Net income + Depreciation and amortization + Changes in working capital &#8211; Gross fixed asset expenditures<\/p>\n<p>In this case, we are given that net income is Rs 8,000, depreciation and amortization is Rs 2,000, changes in working capital is Rs 4,000, and gross fixed asset expenditures is Rs 6,000. Substituting these values into the formula, we get:<\/p>\n<p>Operating cash flow = 8,000 + 2,000 + 4,000 &#8211; 6,000 = 2,000<\/p>\n<p>Therefore, the operating cash flow is Rs 2,000.<\/p>\n<p>Option A is incorrect because it is the negative of the operating cash flow. Option C is incorrect because it is the gross fixed <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> asset expenditures. Option D is incorrect because it is the negative of the gross fixed asset expenditures.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gross fixed asset expenditures is Rs 6000 and free cash flow is Rs 8000 then operating cash flows will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/gross-fixed-asset-expenditures-is-rs-6000-and-free-cash-flow-is-rs-8000-then-operating-cash-flows-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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