A US Company reports net income that is greater than operating cash flow. Which of the following transactions is most likely to have caused this difference? a) Gain from early retirement of debt b) Depreciation and amortization expenses c) Divided income from trading securities d) Interest income from investments classified as available for sale
i’d say A. Gains would be subtracted from net income when calculating CFO. B would be added to net income making CFO greater. C and D would impact both net income and CFO equally.