Masters, Inc., has sales of $32,400, costs of $14,300, depreciation expense of $2,200, and interest expense of

Question:

Masters, Inc., has sales of $32,400, costs of $14,300, depreciation expense of $2,200, and interest expense of $1,160. If the tax rate is 23 percent, what is the operating cash flow, or OCF?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

See More Books

Question Posted: Nov 13, 2020 02:55 AM

See More Questions

In the previous problem, suppose the fixed asset actually qualifies for 100 percent bonus depreciation. All the other facts are the same. What is the projects Year 1 net cash flow now? Year 2? Year...
Calculating OCF Prather, Inc., has sales of $14,200, costs of $5,600, depreciation expense of $1,200, and interest expense of $680. If the tax rate is 35 percent, what is the operating cash flow, or...
Calculating OCF Ranney, Inc., has sales of $18,700, costs of $10,300, depreciation expense of $1,900, and interest expense of $1,250. If the tax rate is 40 percent, what is the operating cash flow,...
On what date is CGT for 2020-21 normally due for payment?
IRS answers to gift tax questions. According to estimates made by the General Accounting Office, the Internal Revenue Service (IRS) answered 18.3 million telephone inquiries during a recent tax...
Answer the following questions. (Hint: Use the accounting equation.) a. Cadence Office Supplies has assets equal to $123,000 and liabilities equal to $47,000 at year-end. What is the total equity for...
9. Suppose that S1 and S2 are correlated, non-dividend-paying assets that follow geometric Brownian motion. Specifically, let S1(0) = S2(0) = $100, r = 0.06, 1 = 0.35, 2 = 0.25, = 0.40 and T = 1....
Amalgamated Products has three operating divisions: To estimate the cost of capital for each division, Amalgamated has identified the following three principal competitors: Assume these betas are...
Question 2 of 9 < < > a. Accounts payable b. Rent revenue c. Unearned revenue d. Property, plant, and equipment e. Short-term investment in the shares of another company f. Sales to customers g....
A review of the ledger of Bellingham Accountants at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries. 1. Prepaid Insurance 10,340. The company...
Timmy Tappan is single and had $189,000 in taxable income. Using the rates from Table 2.3 in the chapter, calculate his income taxes. What is the average tax rate? What is the marginal tax rate?...
Bantam Eggs 2019 balance sheet showed net fixed assets of $3.82 million, and the 2020 balance sheet showed net fixed assets of $4.63 million. The companys 2020 income statement showed a depreciation...
How does the tax law encourage technological progress?
How could civil engineers contribute to space debris management and cleanup?
In what ways can the principles of resilient infrastructure be applied to design urban systems capable of withstanding natural disasters, and how do these principles contribute to the overall safety...
What are local variables and global variables in Python?
When to use a tuple vs list vs dictionary in Python? Explain some benefits of Python
What is Lambda Functions in Python? How do I modify a string in python?
(a) A projectile, such as the canon ball shown in Figure 7.R.13, has weight w = mg and initial velocity v 0 that is tangent to its path of motion. If air resistance and all other forces except its...
Which of the following is NOT a magnetic dipole when viewed from far away? a) A permanent bar magnet. b) Several circular loops of wire closely stacked together with the same current running in each...
Why might the revenue and cost figures shown on a standard income statement not be representative of the actual cash inflows and outflows that occurred during a period?
Under standard accounting rules, it is possible for a companys liabilities to exceed its assets. When this occurs, the owners equity is negative. Can this happen with market values? Why or why not?
Under standard accounting rules, it is possible for a companys liabilities to exceed its assets. When this occurs, the owners equity is negative. Can this happen with market values? Why or why not?
Suppose I have computed the cost of carbon per mile for my car at 0 . 0 1 2 per mile. Assume that the interest rate is 4 % and that I drive the car 2 8 , 0 0 0 miles per year. What is the present...
Imagine that in stable growth period, the firm earns ROIC of 10% and has after tax EBIT of 200 and reinvestment $ of 40. What is the steady state growth rate? 20% O 10% 2%
Tanner-UNF Corporation acquired as a long-term investment $160 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until...

Masters, Inc., has sales of $32,400, costs of $14,300, depreciation expense of $2,200, and interest expense of

Question:

Step by Step Answer:

To calculate OCF we first need the income statement Income ...View the full answer

Corporate Finance Core Principles And Applications

Students also viewed these Business questions