1.

If Earnings Before Interest and Taxes (EBIT) is $93,000, calculate Operating Cash Flow if

• Sales is $350,000
• Cost of Goods Sold (COGS) is $140,000
• Fixed costs is $43,000
• Selling, General, Administrative Expenses (SGA) are $28,000
• Depreciation is $46,000
• Interest Expense is $18,000
• Tax rate is 40%

a.		$120,000
b.		$59,000
c.		$109,000
d.		$75,000