Question
Pennywise, Inc. had a great year. Sales reached an all-time high of $25 million, with a gross margin of $8.5 million. Depreciation was recorded at
Pennywise, Inc. had a great year. Sales reached an all-time high of $25 million, with a gross margin of $8.5 million. Depreciation was recorded at $850,000. Earnings before interest and taxes were $3 million, interest was $1.5 million, and total taxes were $600,000. The firm's operating cash flow (OCF) was:
a.$9,100,000
b.$3,250,000
c.$2,400,000
d.$7,050,000
e.$1,550,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Valuation Workbook
Authors: Tim Koller, Marc Goedhart, David Wessels, Jeffrey P. Lessard, McKinsey & Company
4th Edition
0471702161, 978-0471702160
