Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,001. The firm has a tax rate of 34% and a profit margin of 6%. The firm has no interest expense. What is the amount of the operating cash flow?

Question

Quizplus · Accepted Answer

Operating cash flow (OCF) is calculated as: OCF = (Sales * Profit Margin) + Depreciation. Here, OCF = ($439,000 * 0.06) + $32,000 = $58,340.

Le Place Has Sales of $439,000, Depreciation of $32,000, and Net