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The top-down approach to computing the operating cash flow:

a. ignores noncash expenses
b. applies only if a project increases sales
c. applies only to cost cutting projects
d. is equal to sales - costs - taxes + depreciation
e. is used solely to compute a bid price

Respuesta :

Answer:

a. ignores non cash expenses

Explanation:

The operating cash flow refers to the day to day operating activities which reflect the cash outflow and cash inflow

The formula to compute the  operating cash flow by  top-down approach is shown below:

Operating cash flow = Sales revenue - Cost of goods sold - Taxes

It does not considered any depreciation or amortization expenses.

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