Peter's Boats has sales of $680,000 and a profit margin of 5.2 percent.The annual depreciation expense is $74,000.The tax rate is 34 percent.What is the amount of the operating cash flow if the company has no long-term debt?

Name: Peter's Boats has sales of $680,000 and a profit margin of 5.2 percent.The annual depreciation expense is $74,000.The tax rate is 34 percent.What is the amount of the operating cash flow if the company has no long-term debt?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

OCF = ($680,000 × .052)+ $74,000 = $109,360

Peter's Boats Has Sales of $680,000 and a Profit Margin