Peter's Boats has sales of $711,000 and a profit margin of 7.8 percent.The annual depreciation expense is $59,000.The tax rate is 35 percent.What is the amount of the operating cash flow if the company has no long-term debt?

Name: Peter's Boats has sales of $711,000 and a profit margin of 7.8 percent.The annual depreciation expense is $59,000.The tax rate is 35 percent.What is the amount of the operating cash flow if the company has no long-term debt?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

OCF = ($711,000 × 0.078)+ $59,000 = $114,458

Peter's Boats Has Sales of $711,000 and a Profit Margin