The financial press often uses the term cash flow to refer to a company’s “net income + depreciation.” In a well-known article in Barron’s titled “No Substitutions, Please,” Intel was criticized for relying heavily on a number the company called “cash earnings,” computed by adding amortization of intangible assets to net earnings.
Required
Do you believe that using cash flow measures like the ones described above are superior to using net cash from operation as disclosed in the operating section of the statement of cash flows? Explain.