Question
Pfizer Inc., a leading pharmaceutical corporation, reported net income of $1,200,000, depreciation expenses of $300,000, and an increase in accounts receivable of $150,000 for the
Pfizer Inc., a leading pharmaceutical corporation, reported net income of $1,200,000, depreciation expenses of $300,000, and an increase in accounts receivable of $150,000 for the fiscal year 2023. Calculate the operating cash flow for Pfizer Inc. during 2023 using the indirect method. Operating cash flow is a critical measure of a company's ability to generate cash from its core business operations. Provide a detailed explanation of the operating cash flow calculation process, including adjustments made to net income, and discuss the significance of operating cash flow in assessing Pfizer's financial performance and cash flow dynamics. Analyze the operating cash flow figure in the context of Pfizer's business strategy, capital expenditure decisions, and ability to meet its short-term obligations and invest in future growth opportunities.
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