Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310. If the tax rate is 25 percent, what is the operating cash flow, or OCF?

Sagot :

facundobuzzetti

Answer:

Operating cash flow= $16,792.5

Explanation:

Giving the following information:

Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310.

To calculate the operating cash flow, we need to use the following structure:

Sales= 37,900

COGS= (15,000)

Gross profit= 22,900

Depreciation= (2,400)

Interest= (1,310)

EBT= 19,190

Tax= (19,190*0.25)= (4,797.5)

Depreciation= 2,400

Operating cash flow= 16,792.5

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.