A company has projected sales of $542,000, costs of $389,300, depreciation of $82,400, and a tax rate of 31%. What is the operating cash flow?

Name: A company has projected sales of $542,000, costs of $389,300, depreciation of $82,400, and a tax rate of 31%. What is the operating cash flow?
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Question

Quizplus · Accepted Answer

Operating cash flow (OCF) is calculated as: OCF = (Sales - Costs) * (1 - Tax Rate) + Depreciation. Here, OCF = ($542,000 - $389,300) * (1 - 0.31) + $82,400 = $130,907.

A Company Has Projected Sales of $542,000, Costs of $389,300