Crandall Oil has total sales of $1,349,800 and costs of $903,500. Depreciation is $42,700 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?

Question

Business

Bruce Sanders

16 June, 14:36

Crandall Oil has total sales of $1,349,800 and costs of $903,500. Depreciation is $42,700 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?

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Answers (1)

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Anabelle Castro · Answer 1

Operating Cash flow = $309,076

Explanation:

Operating Cash flow

Sales = $1,349,800

-Costs = $903,500

-Depreciation = $42,700

Operating Income = $403,600

-Tax = $137,224

Net Income = $266,376

Operating Cash Flow = Net Income + Non-Cash Expenses - Increase in Working Capital

Operating Cash flow = $266,376 + $42,700 - 0

Operating Cash flow = $309,076