Q362
Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate
A.
cash flow of financing activities
B.
cash flow per share
AnswerC.
cash flow of investment
D.
cash flow of operations
Answer: Option B
Solution
Answer: Option B
Solution:
Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate cash flow per share. Cash flow per share can be calculated by dividing cash flow earned in a given reporting period (usually quarterly or annually) by the total number of shares outstanding during the same term. Because the number of shares outstanding can fluctuate, a weighted average is typically used.