Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $ 316,500,000 , cost of goods sold of $ 140 comma 500 comma 000 , sales and administrative costs of $ 39 comma 000 comma 000 , depreciation expense of $ 65 comma 400 comma 000 , and a tax rate of 40 %.

Question

Business

Dillon Mcdonald

27 January, 09:42

Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $ 316,500,000 , cost of goods sold of $ 140 comma 500 comma 000 , sales and administrative costs of $ 39 comma 000 comma 000 , depreciation expense of $ 65 comma 400 comma 000 , and a tax rate of 40 %.

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Amelie Park · Answer 1

The operating cash flow for the year for Harper Brothers, Inc is 108,360,000

Explanation:

Sales revenue $316,500,000

- Cost of goods sold $140,500,000

= Gross Income $176,000,000

- Sales and administrative costs $39,000,000

- Depreciation expense $65,400,000

= Operating Income $71,600,000

- Tax rate of 40 % $28,640,000

= Net Profit $42,960,000

Operating Cash Flow For the Year

Net Income $42,960,000

+ Non Cash Expenses $65,400,000

- Increase in Working Capital $0

Operating Cash Flow $108,360,000