Which of the following is NOT included in the calculation of free cash flows?
A)Operating income
B)Interest expense
C)Depreciation
D)Net operating working capital

Question

Quizplus · Accepted Answer

Interest expense is not included in the calculation of free cash flows. Free cash flow calculations typically start with operating income, adjust for non-cash charges like depreciation, and account for changes in working capital, but do not include interest expense since it is a financing activity, not an operating activity.

Which of the Following Is NOT Included in the Calculation