Question

Your firm has net income of $259 on total sales of $1,100. Costs are $620 and depreciation is $110. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow

Answer 1

The correct approach is "369".

Step-by-step explanation:

The given values are:

Net income (NI),

= $259

Total sales,

= $1,100

Depreciation (Dep),

= $110

Tax rate,

= 30%

Now,

The operation cash flow will be:

=
`Net \ income +Depreciation`

By putting the values, we get

=
`259+110`

=
`369`