Last year,Webster Farms had annual revenue of $87,200,depreciation of $11,600,cost of goods sold of $54,700,and administrative expenses of $8,300.The firm paid $3,200 in dividends and paid taxes of $2,646.What was the operating cash flow?

Question

Quizplus · Accepted Answer

Operating cash flow can be calculated as:

Operating cash flow = Revenue - Cost of goods sold - Administrative expenses - Taxes + Depreciation

Plugging in the given values, we get:

Operating cash flow = $87,200 - $54,700 - $8,300 - $2,646 + $11,600
Operating cash flow = $33,554

Therefore, the operating cash flow for Webster Farms was $33,554, which is closest to option D ($21,554).

Last Year,Webster Farms Had Annual Revenue of $87,200,depreciation of $11,600,cost