What is the amount of the operating cash flow for a firm with $500,000 profit before tax, $100,000 depreciation expense, and a 35% marginal tax rate?
A) $260,000
B) $325,000
C) $360,000
D)$425,000

Name: What is the amount of the operating cash flow for a firm with $500,000 profit before tax, $100,000 depreciation expense, and a 35% marginal tax rate? A) $260,000 B) $325,000 C) $360,000 D)$425,000
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Question

Quizplus · Accepted Answer

OCF = [$500,000 × (1 - .35)] + $100,000 = $425,000

What Is the Amount of the Operating Cash Flow for a Firm