Question

Q7.Jett Gas LLC has total sales of $1,479,600 and costs of $914,300. Depreciation is

$41,650 and the tax rate is 34 percent. The firm does not have any interest expense.

What is the operating cash flow?

Q8. Smith Auto Dealership had beginning net fixed assets of $216,525 and ending

net fixed assets of $208,650. During the year, assets with a combined book

value of $7,844 were sold. Depreciation for the year was $41,320.

What is the net cash flow from the purchase or sale of assets?

Q9.The Atlanta Newsfeed Corporation had a net income of $132,700 of which 40 percent

was distributed to shareholders as dividends. During the year, the company sold

$79,000 worth of common stock. What is the cash flow to stockholders?

Can you show the work on these

Q10. Samson Enterprises paid $1,250 in dividends and $850 in interest this past year.

Common stock increased by $1,100 and retained earnings decreased by $295

What is the net income for the year?

Answer 1

Solution to the QUESTION-7

The Operating Cash Flow (OCF)

Annual Operating Cash Flow (OCF) = [(Sales – Costs) x (1 – Tax rate)] + [Depreciation x Tax Rate]

= [($1,479,600 - $914,300) x (1 – 0.34)] + [$41,650 x 0.34]

= [$565,300 x 0.66] + [$41,650 x 0.34]

= $373,098 + $14,161

= $387,259

“Hence, the Operating Cash Flow (OCF) will be $387,259”

PLEASE BE NOTED (More than 1 Question)

Dear student, as per the CHEGG guidelines, the experts are advised to answer the first question only when multiple questions were asked. Here, the multiple questions have asked in the single post and therefore, only the first question have been answered as per the CHEGG guidelines. Can you please ask the remaining questions separately. THANK YOU..!!!