单选题 Cash flow can be generated from a number of sources, including operations, investment and financing.
Funds From Operation is also known as Gross Operating Cash Flow. A company"s operating cash flow consists of income plus non - cash charge less non - cash credits. Non - cash charge represents reduction in income not requiring cash outlays. The items include depreciation and amortization, deferred taxes, asset write - downs, amortization of bond discounts, provisions, reserves, Josses on a sale of equipment mid loss in equity investments. Non - cash credit includes equity earnings in unconsolidated investments, amortization of bond premiums, gain on the sale of equipment, and negative deferred tax provisions.
A company"s operating cash needs consist of receivable, inventory and prepaid items. Increases in them represent use of cash, while decreases in them represent cash outflow. Operating cash sources include accounts payable, accruals and taxes payable. Increases in them are sources of cash since cash is conserved and outlays are delayed, whilst decreases in them represent uses of cash.
Cash from operation (or net operating cash flow) is operating cash flow available after working capital requirements.
Cash flow from investment refers to that generated from primary expenditures real internal cash flow. Primary expenditures include cash dividends, long- term debts, repayments, capital expenditures and fixed assets acquired. Internal cash flow includes miscellaneous items and uses not pertaining to ordinary operations. Examples are disposals, non - operating receivable, purchase and sale of treasury stock, increases and decreases in investments, etc.
Cash flow front financing involves need to finance and new financing. The first category represents total internally generated cash flow. If the amount is negative, we need to determine if the company"s new financing is sufficient to fund the deficit. The second category includes externally generated cash such as new long- term debt, new equity and net change in short- interest bearing debt. The new financing should be an appropriate source for the major uses causing the deficit.
Result change in cash represents the result that the total internally rout externally generated sources of cash net tile total uses of cash during the year.