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viva [34]
2 years ago
8

Your firm has net income of $329 on total sales of $1,340. Costs are $740 and depreciation is $130. The tax rate is 30 percent.

The firm does not have interest expenses. What is the operating cash flow?
Mathematics
1 answer:
seropon [69]2 years ago
6 0

Answer:

Net operating cash flow= $459

Step-by-step explanation:

Giving the following information:

Your firm has net income of $329 on total sales of $1,340. Costs are $740 and depreciation is $130. The tax rate is 30 percent. T

<u>To calculate the operating cash flow, we need to use the following structure:</u>

Sales= 1,340

Costs= (740)

Gross income= 600

Depreciation= (130)

EBIT= 470

Tax= (470*0.3)= (141)

Depreciation= 130

Net operating cash flow= $459

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