What is meant by direct method of calculating operating cash

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Reference no: EM13945861

1. What is the definition of ‘cash'?

2. What is the definition of ‘cash equivalent'?

3. What is meant by the ‘direct method' of calculating operating cash flow?

4. What is meant by the ‘indirect method' of calculating operating cash flow?

5. Why is depreciation ‘added back' to operating profit in the indirect method of calculating operating cash flow?

Reference no: EM13945861

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