Webster World has sales of $12,900,costs of $5,800,depreciation expense of $1,100,and interest expense of $700.What is the operating cash flow if the tax rate is 32 percent?

Question

Quizplus · Accepted Answer

Earnings before interest and taxes = $12,900 - $5,800 - $1,100 = $6,000Taxable income = $6,000 - $700 = $5,300Tax = .32($5,300) = $1,696Operating cash flow = $6,000 + $1,100 - $1,696 = $5,404

Webster World Has Sales of $12,900,costs of $5,800,depreciation Expense of $1,100,and