Answer:
operating cash flow = $12,685
Explanation:
given data
sales = $43,000
costs = $25,100
depreciation expense = $1,500
interest expense = $1,500
tax rate = 35
solution
first we get here Net income that is express as
Net income = Sales - depreciation expense - interest expense .......1
Net income = $43,000 - $25,100 - $1,500 - $1,500
Net income = $14900
and here Tax Expense is 35 % of Net income
Tax Expense is 35 % of $ 14,900 = $5215
so Net Income after tax is = $14900 - $5215 = $9685
now we get here operating cash flow that is express as
operating cash flow = Net Income after tax + Depreciation expense + Interest Expense .............2
operating cash flow = 9,685 + 1,500 + 1,500
operating cash flow = $12,685
