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What is included in operating cash flows?

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The operating section of cash flow includes which of the following:

a. payments to employees
b. proceeds from sale of long term assets
c. payment to owners for stock
d. repayment of long term debt

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Answer: A

Operating cash flows include collections from customers and payments to vendors and employees. However, most cash flow statements use the indirect method of reporting so it is hard to remember how ...

Solution Summary

Students often have trouble remembering what is operating, investing and financing cash flows. This question gives them practice on this and explains why.

See Also This Related BrainMass Solution

Dell analysis of cash provided by operating activities, fred cash flow, dividends

See attached files.

Case 7-1
Analysis of Cash Flows

Refer to the annual report of Dell in Appendix A:

a. Explain how the following items create differences between Dell's earnings from continuing operations and its net cash provided by operating activities:
(1) Depreciation and amortization
(2) Change in deferred taxes
(3) Decrease in receivables
(4) Decrease in inventories
b. Explain why net income is much less than cash from operations in 2005.
c. Calculate Dell's free cash flows for each of the past three years.
d. How has Dell used its free cash flows during the past three years?
e. How much cash has Dell returned to shareholders during each of the past three years and in total?

ANSWER CHECK: (c) 2005=$4,785

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