Homework Answers
Ans : To calculate operating cash flow (OCF), we want to calculate revenues minus costs, but we don't want to include depreciation because it's not a cash outflow, and we don't want to include interest because it's a financing expense. We do want to include taxes because taxes are (unfortunately) paid in cash.
EBIT = Earnings before interest and taxes
Income statement:
Sales = $ 51,500
Less: Cost = $ 23,600
Less: Depreciation = $ 2,400
EBIT = $ 25,500
Less: Interest = $ 2,150
Taxable Income = $ 23,350
Taxes ( 21%) = $ 23,350* 21% = $ 4,903.5
Net Income = $ 18,446.5
Calculation of operating cash flows:
EBIT = $ 25,500
Add: Depreciation = $ 2,400
Less: Taxes = $ 4,903.5
Operating cash flows = $ 22,996.5
Add Answer to:
ompei, Inc., has sales of $51,500, and interest expense of $2150 costs of $23.600, depreciation expense...
Pompeli, Inc, has sales of $46,500, costs of $21,600, depreciation expense of $1.90o, and interest expense...
Pompeli, Inc, has sales of $46,500, costs of $21,600, depreciation expense of $1.90o, and interest expense of $1,650. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow < Prev 80f 10 İİİ Next > e n e to search
Griffin's Goat Farm, Inc., has sales of $668,000, costs of $330,000, depreciation expense of $74,000, interest...
Griffin's Goat Farm, Inc., has sales of $668,000, costs of $330,000, depreciation expense of $74,000, interest expense of $47,000, a tax rate of 21 percent, and paid out $46,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations.) Pompeii, Inc., has sales of $56,000, costs of $25,400, depreciation expense of $2,850, and interest expense of $2,600. If the tax rate is 25 percent, what is the operating cash flow, or OCF? (Do not round...
Pompeii, Inc., has sales of $49,500, costs of $22,800, depreciation expense of $2,200, and interest expense...
Pompeii, Inc., has sales of $49,500, costs of $22,800, depreciation expense of $2,200, and interest expense of $1,950. If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow
Pompeii, Inc., has sales of $52,500, costs of $24,000, depreciation expense of $2,500 and interest expense...
Pompeii, Inc., has sales of $52,500, costs of $24,000, depreciation expense of $2,500 and interest expense of $2,250. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow
Ridiculousness, Inc., has sales of $43,500, costs of $19,900, depreciation expense of $1,600, and interest expense...
Ridiculousness, Inc., has sales of $43,500, costs of $19,900, depreciation expense of $1,600, and interest expense of $1,100. If the tax rate is 35 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow $
Pompeii, Inc., has sales of $53,000, costs of $24,200, depreciation expense of $2,550, and interest expense...
Pompeii, Inc., has sales of $53,000, costs of $24,200, depreciation expense of $2,550, and interest expense of $2,300. If the tax rate is 24 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow $ 20,752||
Pompei,Inc, has sales of $54.500, costs of $24,800, depreciation expense of $2.700, and interest expense of...
Pompei,Inc, has sales of $54.500, costs of $24,800, depreciation expense of $2.700, and interest expense of $2,450. If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations) Operating cash fow
Pompei, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense...
Pompei, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700 If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash fow
Pompeii, Inc., has sales of $52,500, costs of $24,000, depreciation expense of $2,500, and interest expense...
Pompeii, Inc., has sales of $52,500, costs of $24,000, depreciation expense of $2,500, and interest expense of $2,250. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)
Pompeii, Inc., has sales of $55,000, costs of $25,000, depreciation expense of $2,750, and interest expense...
Pompeii, Inc., has sales of $55,000, costs of $25,000, depreciation expense of $2,750, and interest expense of $2,500. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)
Pompeli, Inc, has sales of $46,500, costs of $21,600, depreciation expense of $1.90o, and interest expense of $1,650. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow < Prev 80f 10 İİİ Next > e n e to search
Pompeii, Inc., has sales of $49,500, costs of $22,800, depreciation expense of $2,200, and interest expense of $1,950. If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow
Pompeii, Inc., has sales of $52,500, costs of $24,000, depreciation expense of $2,500 and interest expense of $2,250. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow
Pompeii, Inc., has sales of $53,000, costs of $24,200, depreciation expense of $2,550, and interest expense of $2,300. If the tax rate is 24 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash flow $ 20,752||
Pompei,Inc, has sales of $54.500, costs of $24,800, depreciation expense of $2.700, and interest expense of $2,450. If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations) Operating cash fow
Pompei, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700 If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.) Operating cash fow
Most questions answered within 3 hours.
-
C - Language
Write a loop that sets each array element to the sum of itself...
asked 32 minutes ago -
(63
#14)
which of the following statments best describes how chamging
the concentration of the substances...
asked 4 hours ago -
In the following reaction, which element is undergoing
oxidation: Na2SO3 + N2O --> N2 + Na2SO4...
asked 4 hours ago -
Which of the following pairs of ions have the same electron
configuration?
I: Br− and Se2−...
asked 7 hours ago -
The Foremost Composite Materials Company is planning a two-day
sales conference for October 19-20. The conference...
asked 7 hours ago -
3) Illustrate the observed pattern of relatedness of organisms
versus adaptations to specific conditions. This means...
asked 8 hours ago -
In winter a lake has a 0.35 m thick ice layer over 1.10 m of
water....
asked 9 hours ago -
Assuming the following has been encrypted with a Vigenere cipher
below, use the method(s) and assumptions...
asked 9 hours ago -
How would I use switch statements to write a program that will
take an input of...
asked 9 hours ago -
Imagine a reaction in which methane gas combusts at a constant
pressure of 1 atm and...
asked 9 hours ago -
Two parallel wires (each 12 m in length) are separated by a
distance of 0.065 m...
asked 9 hours ago -
Suppose there were three masses at the corner of uniform
equilateral triangle. The masses are m1...
asked 9 hours ago