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Scott Corporation has a new line of jewelry that will generate sales of $380,000 per year. The variable cost rate for the jewelry amounts to

Scott Corporation has a new line of jewelry that will generate sales of $380,000 per year. The variable cost rate for the jewelry amounts to 35% while fixed costs are $100,000 per year. The Capital Investment for the factory was $900,000 with a depreciable life (straight-line) of 15 years. If the Tax Rate is 22%, what is the Operating Cash Flow?

Multiple Choice

  • None of the above

  • $142,300

  • $167,860

  • $127,860

  • $81,060

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