The Manly Manufacturing Company Pty Ltd has net sales of $821 300 and costs of $698 500.The depreciation expense is $28 400 and the interest paid is $8400.What is the amount of the firm's operating cash flow if the tax rate is 30 per cent?

Question

Quizplus · Accepted Answer

Operating cash flow = Net sales - Costs - Depreciation expense + Taxes
= $821,300 - $698,500 - $28,400 + ($821,300 - $698,500 - $28,400) x 0.3
= $97,000
Therefore, the answer is D.

The Manly Manufacturing Company Pty Ltd Has Net Sales of $821