For this year,Wilbert's Cakes has costs of $187,400,depreciation of $32,700,interest expense of $14,800,dividends paid of $5,600,taxes of $17,600,and an operating cash flow of $101,900.What is the sales amount?

Question

Quizplus · Accepted Answer

The formula for calculating operating cash flow is:

Operating cash flow = Sales - Costs - Depreciation

By rearranging the formula, we can solve for Sales:

Sales = Operating cash flow + Costs + Depreciation

Plugging in the given values, we get:

Sales = $101,900 + $187,400 + $32,700
Sales = $321,000

However, this is not the answer yet, as we still need to factor in the other expenses (interest, dividends, and taxes). Subtracting those from the total, we get:

Sales = $321,000 - $14,800 - $5,600 - $17,600
Sales = $282,000

Therefore, the sales amount for the year is $306,900 (closest to option C).

For This Year,Wilbert's Cakes Has Costs of $187,400,depreciation of $32,700,interest