when comparing cash flow and earnings, operating cashflow should be adjusted by adding back a. depreciation b. interest c. tax
A - non cash expense
b op cf includes interest thus needs to be added back to be on equal footing with regular cf
b you already added dep back to NI in arriving at OCF. So take the OCF and add back interest (which was deducted in computing net income). I would think to add back the tax adjusted interest though…
I think A
doesn’t it depend on whether its IFRS or GAAP?
B - as June said