Review the statement of cash flows in the annual report of MCI, and answer the following questions.
Question:
Review the statement of cash flows in the annual report of MCI, and answer the following questions.
a. What method does MCI use to present the operating section of the statement of cash flows?
b. Explain how MCI used two methods to compute the $2,355 cash from operating activities amount. What kind of different information is provided by the two methods?
c. In the reconciliation of net income to cash from operating activities, why are depreciation and amortization added back to net income in the computation of cash from operating activities?
d. What is EBITDA, and what is it used to measure? Discuss how it differs from cash from operating activities .
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