How does depreciation enter into the calculation of operating cash inflows? How does the i...

How does depreciation enter into the calculation of operating cash inflows? How does the income statement format in Table 11.6 relate to Equation 4.3 for finding operating cash flow (OCF)?

TABLE 11.6 Calculation of Operating Cash Inflows Using the Income Statement Format

OCF = [EBIT × (1 − T)] + Depreciation