Answer:
Operating cash flow= $16,792.5
Explanation:
Giving the following information:
Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310.
<u>To calculate the operating cash flow, we need to use the following structure:</u>
Sales= 37,900
COGS= (15,000)
Gross profit= 22,900
Depreciation= (2,400)
Interest= (1,310)
EBT= 19,190
Tax= (19,190*0.25)= (4,797.5)
Depreciation= 2,400
Operating cash flow= 16,792.5
