Interactive thread on investment-related questions

[Southie]

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.

Assume each year company amortizes Rs 5000 in goodwill. The intersect paid on debt each year is Rs 2000. Income taxes Rs 8000.

What is operating income?
What is operating cash flow?

Looks like we have an investment guru here folks in the form of Ali.

The receivables has increased by Rs 20000 and payables by Rs 10000.

Ok now what is operating cash flow?