Question

Tiger Inc. has total sales of $35,821, cost of goods sold is $10,832, general and administrative expenses are $8,240, and depreciation is $523. The tax rate is 21 percent. The firm does not have any interest expense. What is the operating cash flow

Answer 1

the operating cash flow is $13,342

Step-by-step explanation:

The computation of the operating cash flow is shown below:

Operating cash flow = (sales - Cost of goods sold - G&A expenses - depreciation expense) × (1 - tax rate) + Depreciation expense

= ($35,821 - $10,832 - $8,240 - $523) × (1 - 0.21) + $523

= $13,342

Hence, the operating cash flow is $13,342