Explanation:

Operating cash flow is the cash flow generated from the regular activities of a business. Operating cash flow starts with net income from the income statement, adds back in cash, and then incorporates any changes (adding or subtracting) in working capital.The cash flow statement begins with net income, which is equal to revenues minus all costs, including taxes. As operating cash flow beings with net income, any changes in net income would affect cash flow from operating activities. If revenues decline or costs increase, with the resulting factor of a decrease in net income, this will result in a decrease in cash flow from operating activities.