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Using the data for The Ramsey Company, what is the Operating Cash Flow for Year 4? a. 437,017 b. 407,017 473,617 d. 611,453 The Ramsey

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Using the data for The Ramsey Company, what is the Operating Cash Flow for Year 4? a. 437,017 b. 407,017 473,617 d. 611,453 The Ramsey Company is considering an investment of $1,500,000 with the following projected cash flows. Also, the company uses a 12% discount rate in evaluating investments of this risk level. Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Cost of Revenue Gross Margin SG&A EBITDA Depreciation | EBIT Interest Taxable income Taxes (30%) Net Income $1,110,000 488,400 621,600 105,000 516,600 30,000 486,600 40,000 446,600 133,980 312,620 $1,198,800 527,472 671,328 109,200 562,128 30,000 532,128 39,000 493,128 147,938 345,190 $1,294,704 569,670 725,034 113,568 611,466 30,000 581,466 37,800 543,666 163, 100 380,566 $1,398,280 615,243 783,037 134,984 648,053 30,000 618,053 36,600 581,453 $1,510,143 664,463 845,680 140,383 705,297 30,000 675,297 35,400 639,897 Operating Cash Flow 382,620 414,190 448,366

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