Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Duke Fishron needs your help calculating the operating cash flow (OCF) for his business. Last year he sold 2,200 units for a price of $50.00

Duke Fishron needs your help calculating the operating cash flow (OCF) for his business. Last year he sold 2,200 units for a price of $50.00 per unit. Each unit sold cost him $35.00 and his fixed costs for the year were $14,000. The depreciation expense was $18,000 and his marginal tax rate was 20%. What was his OCF last year? Answer as a dollar amount rounded to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Finance Brief

Authors: Chad J. Zutter, Scott B. Smart

8th Global Edition

1292267143, 978-1292267142

More Books

Students also viewed these Finance questions

Question

5. What are the other economic side effects of accidents?

Answered: 1 week ago