Ask Question
7 February, 20:45

Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. The firm has a tax rate of 34 percent and a profit margin of 6 percent. The firm has no interest expense. What is the amount of the operating cash flow?

+3
Answers (1)
  1. 7 February, 23:38
    0
    Sales$439,000

    Profit Margin = 6% x $439,000 = $26,340

    Tax liability = 34% x $26,340 = $8,956.

    Cash flow from operations:

    Net income $26,340

    Add depreciation $32,000

    Deduct net working capital changes - $56,000

    Deduct tax liability $8,956

    Cash flow from operating activities - $6,616
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. The firm has a tax rate of 34 percent and a ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers