Question: Given the information below for year 2 0 2 0 , which of the multiple choice statements is correct? Operating Cash Flow ( OCF )

Given the information below for year 2020, which of the multiple choice statements is correct?
Operating Cash Flow (OCF)= $25,000
Net Capital Spending (NCS)=- $100,000
Changes in Net Working Capital (^NWC)= $90,000
Cash Flow From Assets (CFFA)= $35,000
Cash Flow to Creditors (CFC)= $20,000
Interest paid = $10,000
a) Given the information below for year 2020, which of the multiple choice statements is correct?
Operating Cash Flow (OCF)= $25,000
Net Capital Spending (NCS)=- $100,000
Changes in Net Working Capital (^NWC)= $90,000
Cash Flow From Assets (CFFA)= $35,000
Cash Flow to Creditors (CFC)= $20,000
Interest paid = $10,000
a)
company purchased $100,000 in fixed assets during 2020
b)
company issued debt during 2020
Correct Answer
c)
company paid back principal on debt during 2020
Incorrect Response
d)
The changes in Net Working Capital is a source of cash (cash inflow)
company purchased $100,000 in fixed assets during 2020
b)
company issued debt during 2020
Correct Answer
c)
company paid back principal on debt during 2020
Incorrect Response
d)
The changes in Net Working Capital is a source of cash (cash inflow)

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