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QUESTION A company has sales of $1,250,000, cost of goods sold of $750,000, depreciation expenses of $250,000 and interest ex
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Answer #1

Operating Cash Flow = Net Income + Non-Cash Charges

Net Income = (1 - 0.34)(1,250,000 - 750,000 - 250,000 - 55,000)

Net Income = $128,700

OCF = 28,700 + 250,000

OCF = $378,700

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