Question

Your firm has net income of $385 on total sales of $1,480. Costs are $810 and depreciation is $120. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow

Answer 1

Operating cash flow= 305.5

Step-by-step explanation:

Giving the following information:

Your firm has net income of $385 on total sales of $1,480. Costs are $810 and depreciation is $120. The tax rate is 30 percent.

EBITDA= 385

Depreciation= (120)

EBIT= 265

Tax= (0.3*265)= (79.5)

Depreciation= 120

Operating cash flow= 305.5