Interactive thread on investment-related questions

[Ali_2]

Re: Interactive thread on investment-related questions

@Southie

Correct!

Let us assume the company bought some equiment 8 years ago worth Rs 200000. Let us assume company depreciates this equipment over 20 years at rate of 10000 per year. This amount is deducted from profits when net income is calculated. What is the company’s operating cash flow (assuming there are no other non cash items that affect net income).

Ali - at this stage I am drawing a blank for difference between operating and net income. Be glad to correct this question per your inpur).

Looks like we have an investment guru here folks.

the information is incomplete for calculating OCF. with this info we can reach to CF before WC changes (unless company is using cash based accounting and not the Accrual based )