5. Find the operating cash flow for the year for Harper Brothers Incorporated if they had sales revenue of $300,000,000, cost of goods sold of $140,000,000, sales and administrative costs of $40,000,000, depreciation expense of $65,000,000, and a tax rate of 40%. ANSWER Using income statement format we have, Sales $300,000,000 COGS $140,000,000 SG&A $ 40,000,000 Depreciation $ 65,000,000 EBIT $ 55,000,000 Taxes (@ 40%) $ 22.000.000 Net Income $ 33.000.000 Operating Cash Flow - EBIT + Depreciation - Taxes Operating Cash Flow = $55,000,000+ $65,000,000 - $22,000,000 - $98,000,000