Operating Cash Flow (OCF)is equal to what?
A)EBIT - Depreciation + Taxes
B)EBIT + Depreciation - Taxes
C)EBIT - Depreciation - Taxes
D)EBIT + Depreciation + Taxes

Question

Quizplus · Accepted Answer

Operating Cash Flow (OCF) is equal to EBIT (earnings before interest and taxes) plus depreciation minus taxes. This is because depreciation is a noncash expense that is added back to EBIT, and taxes are then subtracted to arrive at the net operating cash flow generated by the business.

Operating Cash Flow (OCF)is Equal to What