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tekilochka [14]
3 years ago
11

Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. The firm has a tax rate of 34 perce

nt and a profit margin of 6 percent. The firm has no interest expense. What is the amount of the operating cash flow?
Business
1 answer:
Dennis_Churaev [7]3 years ago
5 0

Answer:

Explanation:

Sales$439,000

Profit Margin = 6% x $439,000 = $26,340

Tax liability = 34% x $26,340 = $8,956.

Cash flow from operations:

Net income $26,340

Add depreciation $32,000

Deduct net working capital changes -$56,000

Deduct tax liability $8,956

Cash flow from operating activities -$6,616

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