[amp_mcq option1=”-Rs 14,000.00″ option2=”Rs 2,000.00″ option3=”Rs 14,000.00″ option4=”-Rs 2,000.00″ correct=”option2″]<\/p>\n
The correct answer is B. Rs 2,000.00.<\/p>\n
Operating cash flow is the cash generated from a company’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
To calculate operating cash flow, we can use the following formula:<\/p>\n
Operating cash flow = Net income + Depreciation and amortization + Changes in working capital – Gross fixed asset expenditures<\/p>\n
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
Operating cash flow = 8,000 + 2,000 + 4,000 – 6,000 = 2,000<\/p>\n
Therefore, the operating cash flow is Rs 2,000.<\/p>\n
Option A is incorrect because it is the negative of the operating cash flow. Option C is incorrect because it is the gross fixed asset expenditures. Option D is incorrect because it is the negative of the gross fixed asset expenditures.<\/p>\n","protected":false},"excerpt":{"rendered":"
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