Question

Your firm has net income of $315 on total sales of $1,260. Costs are $700 and depreciation is $110. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

Answer 1

$425

Step-by-step explanation:

Data provided as per the question is given below:

Net income = $315

Depreciation = $110

The computation of operating cash flow is as shown below:-

Operating cash flow = Net income + Depreciation

= $315 + $110

= $425

Therefore for computing the operating cash flow we simply added net income with depreciation.