Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales = $ 1 9 , 6 1 0 . Costs ( COGS and SG&A ) = $ 9 , 4 2 0 . Depr

Sales=$19,610. Costs (COGS and SG&A)=$9,420. Depr exp=$2,090. Interest exp=$1,580. Tax rate=30%.
Required:
How much is operating cash flow? Construct the income statement an use the OCF formula. EBIT = Sales minus Costs minus Depr. Exp. To find the taxes, subtract Interest Expense from EBIT which gives income before taxes. This result times the tax rate is income tax expense.

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

Handbook Of Modeling High Frequency Data In Finance

Authors: Frederi G. Viens, Maria Cristina Mariani, Ionut Florescu

1st Edition

ISBN: 0470876883, 978-0470876886

More Books

Students also viewed these Finance questions

Question

What is a distributed database? What is a DDBMS?

Answered: 1 week ago

Question

Define two major standards: U.S. GAAP and IFRS.

Answered: 1 week ago

Question

Identify three ways to manage an intergenerational workforce.

Answered: 1 week ago

Question

Prepare a Porters Five Forces analysis.

Answered: 1 week ago

Question

Analyze the impact of mergers and acquisitions on employees.

Answered: 1 week ago