Operating cash flow is equal to the change in EBIT less the change in interest expense,less the change in taxes,plus the change in depreciation.

Question

Quizplus · Accepted Answer

Operating cash flow is calculated as net income plus non-cash expenses (such as depreciation and amortization) and changes in working capital, not as the change in EBIT less the change in interest expense, less the change in taxes, plus the change in depreciation.

Operating Cash Flow Is Equal to the Change in EBIT