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Chevelle, Inc. has sales of $65978, costs of $22683, depreciation expense of $16002, and interest expense...

Chevelle, Inc. has sales of $65978, costs of $22683, depreciation expense of $16002, and interest expense of $2744. If the tax rate is 33 percent, what is the operating cash flow, or OCF?

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Answer #1
Operating Cash flows = EBIT*(1-Tax Rate)+Depreciation
= $       27,293 *(1-0.33)+16002
= $       34,288
Where,
# 1 Calculation of Earning Before Interest and Taxes (EBIT)
Sales $       65,978
Costs $     -22,683
Depreciation Expenses $     -16,002
Earning Before Interest and Taxes $       27,293
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