In 2018, Chevelle Company has sales of $39,500, cost of $18,400, and depreciation of

$1,900 and interest expense of $1,400. Its tax rate is 35%. It has a stock market value

of $250,000 and debt borrowing of $100,000. It has little cash on balance sheet and

pays a dividend of $3,470 in 2018.

Income statement
	Sales	$39,500
Less:	Cost	$18,400
Less:	Depreciation	$1,900
	Operating profit (EBIT)	$19,200
Less:	Interest expense	$1,400
	Earnings before tax	$17,800
Less:	Tax at 35%	$6,230
	Earnings after tax	$11,570
Less:	Dividend paid	$3,470
	Retained earnings	$8,100

Now the question is:

For the year 2018, Chevelle Companys net working capital increased by $2,000, and

capital expenditure was $4,000.

a) Calculate the operating cash flow (OCF)

b) What is the companys CFFA?