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exis [7]
3 years ago
15

Hot and Cold has annual sales of $982,000, annual depreciation of $127,000, and net working capital of $243,000. The tax rate is

34 percent and the profit margin is 6 percent. The firm has no interest expense. What is the amount of the operating cash flow
Business
1 answer:
soldi70 [24.7K]3 years ago
3 0

Answer:

$185,920

Explanation:

Calculation for What is the amount of the operating cash flow

Using this formula

Operating cash flow=(Sales *Profit margin)+Depreciation

Let plug in the formula

Operating cash flow=($982,000*6%)+$127,000

Operating cash flow=$58,920+$127,000

Operating cash flow=$185,920

Therefore the amount of the operating cash flow will be $185,920

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