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What is the amount of the operating cash flow for a firm with revenues of $1,500,000;...

What is the amount of the operating cash flow for a firm with revenues of $1,500,000; expenses of $500,000; depreciation expense of $200,000; and a 35% marginal tax rate?

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Answer #1
Particulars Amount (In $)
Revenues 1500000
Less: Expenses -500000
Earnings Before Interest, Depreciation and tax 1000000
Less: Depreciation -200000
Earnings Before Interest and tax 800000
Less: Interest 0
Earnings Before Tax 800000
Less: Tax @ 35% -280000
Profit after tax 520000
Add: Depreciation 200000
Operating Cash Flow 720000
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