Which of the following is not included in the computation of operating cash flow?
A) Earnings before interest and taxes
B) Interest paid
C) Depreciation
D) Current taxes
E) All of these are included

Question

Quizplus · Accepted Answer

Operating cash flow is calculated by starting with earnings before interest and taxes (EBIT), adding back depreciation (which is a non-cash expense), subtracting taxes paid, and adjusting for changes in working capital. Interest paid is a financing activity and is not included in the computation of operating cash flow.

Which of the Following Is Not Included in the Computation