Operating Cash Flow = Operating Income + Depreciation & Amortization + Decrease in Working Capital – (Income Tax Paid – Deferred Tax Paid) Operating Cash Flow is calculated using the formula given below
According to the annual report for 2018, the following information is available: to illustrate the computation of the cash flow formula.
Cashflow finance free#
Therefore, the company generated operating cash flow and free cash flow of $22.1 million and $9.3 million respectively during the year 2018. Free Cash Flow = $22.7 million + $3.2 million – $6.5 million – $10.1 million.
Net Income = $35.2 million – $2.7 million – $9.8 millionįree Cash Flow is calculated using the formula given belowįree Cash Flow = Net Income + Depreciation – Change in Working Capital – Capex.Net Income = Operating Income – Interest – Taxes Net Income is calculated using the formula given below Operating Cash Flow = $35.2 million + $3.2 million – $6.5 million – $9.8 million.Operating Cash Flow = Operating Income + Depreciation – Change in Working Capital – Taxes Operating Cash Flow is calculated using the formula given below
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