Question

Calculate the operating cash flow for 2016. I just want to make sure it is correct. Thank you.

Sales	403,456
Cost of Goods Sold	201,943
Gross Profit	201,513
Selling & Administrative Expenses	43,130
EBIT	158,383
Interest expense	13,130
Depreciation	56,876
EBT	88,377
Taxes	30,932
Net Income	57,445
Dividends	28,723
Additions to Retained Earnings	28,723

Current Assets			Current Liabilities
Cash	30,629		Accounts Payable	52,910
Inventory	45,785		Notes Payable	24,308
Accounts Receivable	21,524		Total Current Liabilities	77,218
Total Current Assets	97,938		Long-term Debt	129,342
Net Fixed Assets	262,617		Owner's Equity	153,995
Total Assets	360,555		Total Liabilities & Equity	360,555

Operating Cash Flow for 2016 =

$184,327

Answer 1

Ans.	Yes, this is absolutely correct.
	The calculation for Operating cash flow is as follows:
	Particulars	Amount
	EBIT	$158,383
	Add: Depreciation	$56,876
	Less: Taxes	-$30,932
	Operating cash flow	$184,327
	*EBIT = Earnings before interest and taxes.