To estimate the cash flow from operations, depreciation must be added back to net income because it is a non-cash charge that has been deducted from revenue.

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Depreciation is a non-cash expense that is deducted from revenue to determine net income. However, it does not impact the company's cash flows, so it needs to be added back to net income when calculating cash flow from operations.

To Estimate the Cash Flow from Operations, Depreciation Must Be