The Pancake House has sales of $1,642,000,depreciation of $27,000,and net working capital of $218,000.The firm has a tax rate of 35 percent and a profit margin of 6 percent.The firm has no interest expense.What is the amount of the operating cash flow?
A)$98,520
B)$125,520
C)$147,480
D)$268,480
E)$343,520

Question

Quizplus · Accepted Answer

OCF = ($1,642,000 × 0.06) + $27,000 = $125,520

The Pancake House Has Sales of $1,642,000,depreciation of $27,000,and Net