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Pompeii, Inc., has sales of $53,000, costs of $24,200, depreciation expense of $2,550, and interest expense of $2,300. If the

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Answer #1
Sales $53,000
Costs $24,200
Depreciation $2,550
EBIT $26,250
Interest $2,300
Taxable income $23,950
Taxes(24%) $5,748
Net income $18,202

OCF = EBIT + Depreciation - Taxes

OCF = $26,250 + $2,550 - $5,748

OCF = $23,052

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