Answer:
$7,884
Explanation:
Data provided in the question:
Sales = $19,570
Cost = $9,460
Depreciation expense = $2,130
Interest expense = $1,620
Tax rate = 35%
Now,
Net Income before Tax
= Sales - Cost - Depreciation expense - Interest expense
= $19,570 - $9,460 - $2,130 - $1,620
= $6,360
Therefore,
Tax = Tax rate × Net Income before Tax
= 0.35 × $6,360
= $2,226
Thus,
Net income = Net Income before Tax - Tax
= $6,360 - $2,226
= $4,134
Therefore,
Operating cash flow = Net Income + Depreciation + Interest
= $4,134 + $2,130 + $1,620
= $7,884