Question

Find the operating cash flow for the year for Harper​ Brothers, Inc. if it had sales revenue of $ 302,400,000​, cost of goods sold of $ 148,900,000​, sales and administrative costs of $ 39,200,000​, depreciation expense of $ 60,300,000​, and a tax rate of 40 %.

Answer 1

The operating cash flow for the year is $ 92,700,000.

Step-by-step explanation:

taxes = [(tax rate)/100]*(sales revenue - cost of goods sold - sales and administrative costs - depreciation expense )

= [(40)/100]*($ 302,400,000 - $ 148,900,000​ - $ 39,200,000 - $ 60,300,000)

= $ 21600000

net income = $ 302,400,000 - $ 148,900,000 - $ 39,200,000 - $ 60,300,000 - $ 21600000

= $ 32400000

operating cash flow = net income + depreciation expense

= $ 32400000 + $ 60,300,000

= $ 92,700,000

Therefore, the operating cash flow for the year is $ 92,700,000.