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Veronika [31]
4 years ago
9

Crandall Oil has total sales of $1,349,800 and costs of $903,500. Depreciation is $42,700 and the tax rate is 34 percent. The fi

rm does not have any interest expense. What is the operating cash flow?
Business
1 answer:
julia-pushkina [17]4 years ago
4 0

Answer:

Operating Cash flow = $309,076

Explanation:

Operating Cash flow

Sales                         = $1,349,800

-Costs                        = $903,500

-Depreciation            = $42,700

Operating Income    = $403,600

-Tax                           = $137,224

Net Income               = $266,376

Operating Cash Flow = Net Income + Non-Cash Expenses – Increase in Working Capital

Operating Cash flow = $266,376 + $42,700 - 0

Operating Cash flow = $309,076

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