# Operating Cash Flow Calculator Online

Operating Cash Flow Calculator

# Operating Cash Flow Calculator

The real money a company is getting from operations Cash  Flow. The Operating Cash flow  equal to added to net income , depreciation , amortization , change operating working capital , income tax payable , net of other cash flows.

Formula us,

Operating cash flow = Net income + Depreciation + Amortization + Change operating working capital + Income tax payable + Net of other cash flows

let us consider,

• Change in inventory: It includes the acquisition and consumption of inventory.
• Change in accounts receivables: This item refers to the money that clients have to pay to the company for the goods or services provided.
• Change in accounts payable: Contrary to the previous one, this item refers to the company’s debt with its providers/suppliers.
• Net operating cash flow increasing and higher than net income: A cash flow from operating activities in these conditions can only mean a successful company .
• Net operating cash flow decreasing and lower than net income can only mean bad times for the business. Basically, the company is earnings.

Example,

Operating cash flow = Net income + Depreciation + Amortization + Change operating working capital + Income tax payable + Net of other cash flows

Net income = 30,00\$

Depreciation + Amortization = 6000\$

Change inventory = 48,00\$

Change accounts receivables = -6,000\$

Change accounts payable = 7,000\$

Income tax payable = -18,000 \$

The answer is operating cash flow  = 44,800\$