Which of the following identities is TRUE?
A) Operating Cash Flow = EBIT + Depreciation - Taxes
B) Net Capital Spending = Ending Net Fixed Assets - Depreciation
C) Change in Net Working Capital (NWC) = Current Assets - Current Liabilities
D) Cash Flow from Assets = Operating Cash Flow + Net Capital Spending
Answer: A
Explanation: A) Net Capital Spending = Ending Net Fixed Assets - Beginning Net Fixed Assets + Depreciation
Change in Net Working Capital (NWC) = Ending NWC - Beginning NWC
Cash Flow from Assets = Operating Cash Flow - Net Capital Spending - Change in NWC
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