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Operating Cash Flow
Operating cash flow can be defined as: Cash generated from Operating Activities - Taxes and Interest paid, + Investment Income Received and - Dividends Paid
The Operating cash flow section of a cash flow statement analyzes a company’s cash flow from net income or losses. It reconciles net income (as shown on the income statement) to the actual cash the company received from or used in its operating activities.
To do this, it adjusts net income for any non-cash items (such as adding back depreciation expenses) and adjusts for any cash that was used or provided by other operating assets and liabilities.
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