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1. Countrywide Limited is a fast food company in your community. You are given the following information for Countrywide for the period ending 2018. Accounts
1. Countrywide Limited is a fast food company in your community. You are given the following information for Countrywide for the period ending 2018. Accounts Receivable Property. Plant and Equipment Cash Accumulated Depreciation Inventory Accounts Payable Common stock Long-Term Debt Retained Earnings 2018 $2,000 28,400 11,300 12,000 5,800 1,800 24,500 7,800 1,400 Required: a) Prepare (in good form) a balance sheet for 2018 for the company b) Assume for the year 2018 Countrywide Limited had an EBIT of $21,000, depreciation of $2,000 and paid taxes of $14,000. Calculate the Operating Cash Flow (OCF) for 2018. c) Explain why the operating cash flow is an important number, and why interest is not included in the computation of OCF
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