Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stray Cats has annual sales of $ 8 4 7 , 0 0 0 , annual depreciation of $ 4 7 , 0 0 0

Stray Cats has annual sales of $847,000, annual depreciation of $47,000, and net working capital of $43,000. The tax rate is 21 percent and the profit margin is 7.3 percent. The firm has no interest expense. What is the amount of the operating cash flow?
a.155,831
b.168,480
c.121,220
d.14,831
It is.108,831

Step by Step Solution

3.47 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the operating cash flow we can use the following formula Operating Cash Flo... 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

Fundamentals of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

1st canadian edition

978-0133400694

More Books

Students also viewed these Finance questions