sales=$10,980 cost of goods sold=$8,100 depreciation expense=$1,440 interest expense=$180 dividends paid=$270 Tax rate for the year...

sales=$10,980
cost of goods sold=$8,100
depreciation expense=$1,440
interest expense=$180
dividends paid=$270
Tax rate for the year was 35%

what is the operating cash flow for the year

Solutions

Expert Solution

Income Statement

Sales		10,980
Less:	Cost of goods sold	8,100
Gross profit		2,880
Less:	Depreciation	1,440
EBIT		1,440
Less:	Interest	180
Income Before Income Tax (EBT)		1,260
Less: Income Tax@35%		441
Net Income		819
Less: Dividend Paid		270
Addition to Retained Earnings		549

OCF = EBIT+Depreciation-Taxes

= 1440+1440-441

= 2439

jeff jeffy answered 1 year ago

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