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

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Financial and Management Accounting

ISBN: 978-1292086590

7th edition

Authors: Pauline Weetman

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Question Posted: Jan 25, 2018 01:34 AM

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What is meant by the 'indirect method' of calculating operating cash flow?
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Why is depreciation 'added back' to operating profit in the indirect method of calculating operating cash flow?

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Financial and Management Accounting

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