Operating cash flow (OCF) is calculated by deducting depreciation from net operating profit after taxes.

Name: Operating cash flow (OCF) is calculated by deducting depreciation from net operating profit after taxes.
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Question

Quizplus · Accepted Answer

Operating cash flow (OCF) is calculated by adjusting net income for changes in non-cash items (like depreciation and amortization) and changes in working capital. Depreciation is added back to net income in the calculation of OCF, not deducted.

Operating Cash Flow (OCF) Is Calculated by Deducting Depreciation from Net