Long description
| Operating Cash Flow Calculation | Income statement |
| Revenues | Revenues |
| Less: Cost of goods Sold | Less: Cost of goods Sold |
| Equals: Gross profit | Equals: Gross profit |
| Less: Operating expenses (including depreciation) | Less: Operating expenses (including depreciation) |
| Equals: Net operating income (profit or earnings before interest and taxes, EBIT) to the power of a. | Equals: Net operating income (profit) |
| Less: Taxes (based on net operating income or EBIT) | Less: Interest expense |
| Equals: Net operating profit after taxes (NOPAT) | Earnings before taxes (EBT) |
| Plus: Depreciation expense | Less: Taxes (based on EBT) |
| Operating cash flow | Net income |
The Note: Operating expenses include both cash expenses and depreciation expense points to Less: Operating ...
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