Question

Hailey, Inc., has sales of $19,650, costs of $9,380, depreciation expense of $2,050, and interest expense of $1,540. Assume the tax rate is 35 percent.What is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number,

Answer 1

Answer:

Net operating cash-flow= $6,392

Explanation:

Giving the following information:

Sales of $19,650.

Costs of $9,380

Depreciation expense of $2,050.

Interest expense of $1,540.

The tax rate is 35 percent

Cash- flow:

Sales 19650

Cost= 9380 (-)

Interest= 1540 (-)

Depreciation =2050 (-)

EBT= 6680

Tax= (6680*0.35)=2338 (-)

EAT= 4342

Depreciation= 2050 (+)

Net operating cash-flow= 6392