Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Valuation Workbook

Authors: Tim Koller, Marc Goedhart, David Wessels, Jeffrey P. Lessard, McKinsey & Company

4th Edition

0471702161, 978-0471702160

More Books

Students also viewed these Finance questions