How is net cash flow calculated if depreciation is the only noncash item in a firm's income statement??
A. ?Net cash flow = Net income + Depreciation and amortization
B. ?Net cash flow = Accounting profit - Depreciation and amortization
C. Net cash flow = Accounting profit - Operating cash flow
D. ?Net cash flow = Fixed assets + Depreciation and amortization
E. ?Net cash flow = Operating cash flow - Depreciation and amortization
Answer: A
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