Final answer:
The OCF for 2014 refers to the Operating Cash Flow for the year 2014. OCF is a measure of a company's cash generated by its core operations. It is calculated by starting with net income and making adjustments for non-cash expenses and changes in working capital.
Step-by-step explanation:
The OCF for 2014 refers to the Operating Cash Flow for the year 2014. Operating Cash Flow (OCF) is a measure of the cash generated or used by a company's core operations. It shows the amount of cash generated by a company's day-to-day operations, such as sales and services, before taking into account taxes, interest expenses, and other non-operating items.
To calculate OCF, you start with a company's net income and add back non-cash expenses like depreciation and amortization. You also adjust for changes in working capital, such as accounts receivable, accounts payable, and inventory. OCF is important because it helps assess a company's ability to generate cash from its operations.
For example, if a company has a positive OCF, it indicates that it is generating enough cash from its core operations to cover expenses and invest in growth. On the other hand, a negative OCF may indicate cash flow issues and the need for external financing.