A project has annual depreciation of $24,700, costs of $100,700, and sales of $148,500. The applicable...

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

Expert Solution

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

jeff jeffy answered 9 months ago

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