Question

*all answers must be entered as a formula

Chevelle. Inc., has sales of $39.500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax rate is 21 percent, what is the operating cash flow, or OCF? Sales Costs Depreciation Expense Interest Expense Tax rate 39,500 18,400 1,900 1,400 21% Complete the following analysis. Do not hard code values in your calculations. Income Statement Sales Costs Depreciation expense EBIT

Answer 1

Income Statement
Particulars	Amount
Sales	39,500
Less: Costs	18,400
Less: Depreciation Expenses	1,900
EBIT	19,200
Less: Interest Expenses	1,400
EBT	17,800
Less: Tax at 21%	3,738
Net Income	14,062

Operating cash flow

Operating cash flow = Net Income + Depreciation expenses

= $14,062 + $1,900

= $15,962