Urban Inc.has estimated the following revenues and expenses related to phase I of a proposed new housing development.Incremental sales= $5 000,000, total cash operating expenses $3 500,000, depreciation $500,000, taxes 35%, interest expense, $200,000.Operating cash flow equals [blank].

Question

Quizplus · Accepted Answer

Operating cash flow = incremental sales - total cash operating expenses - depreciation - taxes 
= $5,000,000 - $3,500,000 - $500,000 - (0.35*$5,000,000) 
= $1,150,000

Urban IncHas Estimated the Following Revenues and Expenses Related to Phase