Calculating the Operating Cash Flow of Graff, Incorporated

What is operating cash flow?

Operating cash flow is the amount of cash derived from the normal operations of a business. How can we calculate the operating cash flow of Graff, Incorporated based on the given data?

Operating Cash Flow Calculation

Operating cash flow can be calculated by adding the net income of the company with the depreciation expense. In this case, the net income of Graff, Incorporated is $21,000 and the depreciation expense is $2,300.

In the given data, Graff, Incorporated has a net income of $21,000. This means that after subtracting all the costs, depreciation, and interest expenses, the company made a profit of $21,000. The depreciation expense of $2,300 is added to the net income to calculate the operating cash flow. The operating cash flow of a company like Graff, Incorporated is a key financial metric that shows how well the company can generate cash from its core business operations. With an operating cash flow of $19,460, Graff, Incorporated is in a strong position to fund its day-to-day operations and invest in future growth opportunities.