To get the operating cash flow,given the net income,we add back ________.
A)cost of goods sold
B)depreciation
C)taxes
D)EBIT

Question

Quizplus · Accepted Answer

To get the operating cash flow, we add back depreciation to net income. Depreciation is a non-cash expense that reduces net income but doesn't affect cash flow. Therefore, adding it back gives a more accurate measure of a company's cash-generating ability. Cost of goods sold, taxes, and EBIT are not added back to calculate operating cash flow.

To Get the Operating Cash Flow,given the Net Income,we Add