Operating Cash flow:
Operating cash flow is a measure of the cash generated or used by the organization in a period which is solely related to its core operations. The operating cash flow doesn’t include the non-cash items such as depreciation and amortization.
Depreciation is a reduction in the value of the company’s asset over time due in particular to wear and tear. Amortization is spreading out of capital expenses for intangible assets over a specific period of time for accounting and tax purposes. These two items are not included in the OCF because they are non-cash expenses to show the real cash position of the organization.......................
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