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Module For operating cash flow I used net income + depreciation but my professor states that...

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For operating cash flow I used net income + depreciation but my professor states that is the wrong answer. Is there another way to calculate operating cost? If so can you please show me and explain? Thank you

Sales                                                                                                                   1,100,000 1,100,000
Operating costs (excluding depreciation)                                                   1100000.000 0.70 770,000.00
EBITDA                                                                                                             1100000.000 770,000 330,000.000
Depreciation                                                                                                    205,000 0.15 30,750.00
EBIT                                                                                                                  330,000 30,750 299,250
Interest Expense                                                                                            100,000
EBT                                                                                                                   299,250 100,000 199,250
Taxes***                                                                                                         60957.5 60,958
Net Income                                                                                                    199,250 60,958 138,292
Common Dividends                                                                                     110634 11,064
Addition to Retained Earnings                                                                  138292.5 11,063 127,229
Operating Cash Flow= 138,292 30,750 169,042
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Calculate the operating cash flow as follows 1 Particulars 2 EBIT 2 Taxes 4 Depreciation 5 Operating cash flows $474,042.50 $269,042.00 Amount Amount $330,000.00 $299,250.00 $60,957.50$60,958.00 $205,000.00 $30,750.00 Formulas 1 Particulars 2 EBIT 3 Taxes 4 Depreciation 5 Operating cash flows B2-B3+B4 C2-C3+C4 Amount Amount 330000 299250 60957.5 60958 205000 30750 Operating cash flows are cash flows generated by the organisation operating activity EBIT is used to calculate the operating cashflow, because it is the free cash flow which is available for debt and equity holders.To calculate operating cashflow depreciation shall be added back because it is a non cash expense:s Operating cash flow EBIT Depreciation Taxes

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