Answer:
$23,062.50
Explanation:
The computation of the operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense + interest expense
where,
EBIT = Sales - cost of good sold - depreciation expense - interest expense
= $53,500 - $24,400 - $2,600 - $2,350
= $24,150
And, the income tax expense would be
= (Sales - cost of good sold - depreciation expense - interest expense) × tax rate
= ($53,500 - $24,400 - $2,600 - $2,350) × 25%
= $24,150 × 25%
= $6,037.50
So, the OCF would be
= $24,150 + $2,600 - $6,037.50 + $2,350
= $23,062.50
