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O 0 UN 0 1 3-2: Analysis of an Expansion Project Problem 13-2 Operating Cash Flow The financial staff of Cairn Communications
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Answer #1
Sales 25000000
Less: Operating costs 10000000
Depreciation 5000000
Interest 5000000
Profit before tax 5000000
Less: Tax at 35% 1750000
Net Income 3250000
Add: Depreciation 5000000
Operating cash flow 8250000

Answer= 8250000

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