Question

XYZ has sales of $32412, costs of $20381, depreciation expense of $2100, and interest expense of $1308. If the tax rate is O percent, what is the operating cash flow, or OCF (in

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Answer #1
Operating Cash flows:
Inflows from sales 32412
Outflows from cost -20381
Outflows from Interest expenses -1308
Net cash inflows from Operating activities 10723
Note: Depreciation is a non cash expense. Hence, it will not effect the cashflows
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