Homework Answers
Solution :-
Operating Cash flow using the top down approach :-
Taxable Profit = Sales - Cash Exps - Depreciation
Taxable Profit = $450,000 - $305,001 - $36,001 = $108,998
After tax Profit = Taxable Profit - Tax Expense
After tax Profit = $108,998 - $38,001 = $70,997
Net Operating Cash flow = After tax Profit + Depreciation
Net Operating Cash flow = $70,997 + $36,001 = $106,998
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