In: Finance
A project has annual depreciation of $24,700, costs of $100,700, and sales of $148,500. The applicable tax rate is 35 percent. What is the operating cash flow?
$31,070
$47,125
$105,170
$39,715
$25,375
Sales | 148,500 | |
Less: | Cost | 100,700 |
Gross profit | 47,800 | |
Less: | Depreciation | 24,700 |
EBIT | 23,100 | |
Less: | Interest | - |
Income Before Income Tax (EBT) | 23,100 | |
Less: Income Tax@35% | 8,085 | |
Net Income | 15,015 |
Operating Cash Flow = Net Income +/-Changes in assets & Liabilities+Non cash expenses
= 15015+24700
= $39,715