Question

The EBIT is $40,000, depreciation is $10,000, and taxes are $6,000. What is the operating cash flow (OCF)

Answer 1

Operating cash flow= $44,000

Step-by-step explanation:

Giving the following information:

The EBIT is $40,000, depreciation is $10,000, and taxes are $6,000.

To calculate the operating cash flow, we need to use the following formula:

Operating cash flow= EBIT - T + Depreciation

Operating cash flow= 40,000 - 6,000 + 10,000

Operating cash flow= $44,000