Interview Question

TRACK Program Interview


General Motors (GM)

How would you reconcile EBIT to cash flow

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Interview Answer

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Subtract taxes and add interest. Add depreciation, amortization, and impairments. Where asset accounts increase, subtract by that amount. Where assets decrease, add by that amount. Where liabilities increase, add by that amount. Where liabilities decrease, subtract by that amount. Add issuance of stock and subtract dividends. (That's what I would say in a general sense. You could break it up by operating, investing, and financing activities.)

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