Which one of the following statements is correct concerning a corporation with taxable income of $125,000?

Corporate Finance

Which one of the following statements is correct concerning a corporation with taxable income of $125,000?

Net income minus dividends paid will equal the ending retained earnings for the year.
An increase in depreciation will increase the operating cash flow.
Net income divided by the number of shares outstanding will equal the dividends per share.
Interest paid will be included in both net income and operating cash flow.

Note

Which one of the following statements is correct concerning a corporation with taxable income of $125,000?Answer:An increase in depreciation will increase the operating cash flow.

Tags: Financial Statements, Taxes, and Cash Flow

Note

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