Question

Bi-Lo Traders is considering a project that will produce sales of $41,350 and have costs of $23,900. Taxes will be $4,200 and the depreciation expense will be $2,425. An initial cash outlay of $1,950 is required for net working capital. What is the project's operating cash flow

Answer 1

Answer:

$13,250

Explanation:

Bi-Lo traders is considering a project that will produce sales of $41,350 and costs of $23,900

Taxes will be $4,200

Depreciation expense will be $2,425

Therefore the project operating cash flow can be calculated as follows

= $41,350-$23,900-$4,200

= $13,250

Hence the operating cash flow is $13,250