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Brilliant_brown [7]
3 years ago
15

Hailey, inc., has sales of $19,630, costs of $9,400, depreciation expense of $2,070, and interest expense of $1,560. assume the

tax rate is 30 percent. what is the operating cash flow, or ocf
Business
1 answer:
Vedmedyk [2.9K]3 years ago
5 0

Sales = 19,630

Costs = 9,400

Gross Profit = 10,230

Depreciation = 2,070

Interest expense = 1,560

Earnings before tax = 6,600

Taxes at 30% = 1,980

Net Income =  4,620

Add back Depreciation = 2,070 (as it is an non cash expense)

Operating cash flow (OCF) = $ 6,690

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Answer:

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1.D

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