Answer:
Operating cash flow= $29,886
Explanation:
Giving the following information:
Sales= $262,100
Total variable cost= $144,000
Total fixed costs= $61,300.
Annual interest expense of $24,500. The annual depreciation is $25,200 and the tax rate is 34 percent.
<u>We need to determine the operating cash flow:</u>
Sales= 262,100
Total variable cost= (144,000)
Contribution margin= 118,100
Total fixed costs= (61,300)
Depreciation= (25,200)
Interest= (24,500)
EBIT= 7,100
Tax= (7,100*0.34)= (2,414)
Depreciation= 25,200
Operating cash flow= 29,886
