Assume a firm has depreciation, taxes, and interest expense. In this case, operating cash flow:

A) Is the same as net income.
B) Is the same as net income plus depreciation.
C) Must be positive because depreciation is added to the taxable income.
D) Can be positive, negative, or equal to zero.
E) Is equal to the cash flow to creditors.

Operating Cash Flow

The cash generated from normal business operations, indicating whether a company is able to generate sufficient cash to maintain or expand operations.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Net Income

The remaining profit of a company after all financial obligations and taxes are taken out of its total income.