El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales...
El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales $298,821 Variable costs $129,721 Fixed costs and selling, general and administrative expenses $10,732 Depreciation Expense $13,965 Tax Rate 35% Calculate the operating cash flow for Year 1.
Round the answer to two decimals
Homework Answers
OCF=Earnings before interest and taxes-Taxes+Depreciation
= $ 144403- $ 50,541.05+ $ 13,965
= $ 107,826.95
Answer : $ 107,826.95
Note:
| Particulars | Amount($) |
| Sales | 2,98,821 |
| Less Variable costs | 1,29,721 |
| Less : Fixed Cost | 10,732.00 |
| Less:depreciation | 13,965.00 |
| EBIT | 1,44,403.00 |
| Less:interest expense | - |
| EBT | 1,44,403.00 |
| Less:taxes@35% | 50,541.05 |
| Net income | 93,861.95 |
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