Question

A project has annual depreciation of $25,500, costs of $101,900, and sales of $150,500. The applicable tax rate is 34 percent. What is the operating cash flow

Answer 1

$48,600

Step-by-step explanation:

Operating Cash flow is the cash generated from operating/trading activities of a firm. It is very important to include only the cash transactions and ignore any non -cash items.

Thus,

Operating Cash flow = $150,500 - $101,900

= $48,600