Well no. I know that expenses are not cash flow. Expenses do not include the revenue side of the picture.
Operating cash flow is calculated by a relatively simple equation:EBIT (earnings before interest and taxes)+ Depreciation- Taxes.EBIT is also known as operating income.
How to Calculate Operating Income in Cash Flow
1
Add up all the cash incomes the business earns from its main activities throughout the period. These incomes include product sales revenue, fees charged for services, interest on loans extended by the business and dividends from its stocks.
2 Add up all the cash expenses the business pays out during the period to conduct its main activities. These expenses include payment for raw materials, employee salaries, taxes and loan interest.
3 Deduct the business' cash operating expenses from its cash operating revenues to obtain its operating income.
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