Crandall Oil has total sales of $1,349,800 and costs of $903,500.Depreciation is $42,700 and the tax rate is 34 percent.The firm does not have any interest expense.What is the operating cash flow?

Question

Quizplus · Accepted Answer

Earnings before interest and taxes = $1,349,800 - $903,500 - $42,700 = $403,600Tax = $403,600 × .34 = $137,224Operating cash flow = $403,600 + $42,700 - $137,224 = $309,076

Crandall Oil Has Total Sales of $1,349,800 and Costs of $903,500.Depreciation