Benson Inc has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense...

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Benson Inc has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense...

Benson Inc has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense of 1$,850. If the tax rate is 21% percent what is the operating cash flow or OCF?

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Answer 1

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Answer #1

Ans :

Sales = $ 38,530

Less: Cost = $ 12,750

EBIDT = $ 25,780

less: Depreciation = $ 2,550

EBIT = $ 23,230

less: Interest = $ 1,850

EBT = $ 21,380

less: Taxes = $ 4,489.8 ( $ 21,380 * 21%)

Net Income = $ 16,890.2

Operating cash flow (OCF) = EBIT + depreciation - taxes

= $ 23,230 + $ 2,550 - $ 4,489.8

= $ 21,290.2

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Answer 2

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Benson Inc has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense...

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Benson Inc has sales of $38,530, costs of $12,750, depreciation expense of $2,550, and interest expense...