Question
Sales=$19,650. Costs (COGS and SG&A)=$9,380. Depr exp=$2,050. Interest exp=$1,540. Tax rate=35%. Required: How much is operating cash flow?Construct the income statement an use the OCF
Sales=$19,650. Costs (COGS and SG&A)=$9,380. Depr exp=$2,050. Interest exp=$1,540. Tax rate=35%.
Required:How much is operating cash flow?Construct the income statement an use the OCF formula.EBIT = Sales minus Costs minus Depr. Exp.To find the taxes, subtract Interest Expense from EBIT which gives income before taxes.This result times the tax rate is income tax expense.
What is theOperating cash flow$
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
