Question: Operating Cash Flow Calculation and Analysis : A company reported net income of $500,000, depreciation expense of $100,000, and an increase in accounts receivable of
Operating Cash Flow Calculation and Analysis: A company reported net income of $500,000, depreciation expense of $100,000, and an increase in accounts receivable of $50,000. Calculate the company's operating cash flow using the indirect method, and interpret the results in terms of cash flow generation, liquidity, and operational efficiency. Discuss any discrepancies between net income and operating cash flow and their implications for financial analysis.
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