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12-13 (Simllar to) Question Help (Calculating operating cash flows) The Heritage Farm Implement Company is considering an inv
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Answer #1

Net operating income after taxes = (Revenues- costs - depreciation)(1-tax rate)

=(2,600,000-1,050,000-390,000)*(1-32%)

=$788,800

Operating cash flow = operating income after taxes + depreciation

=$1,178,800

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