Question

For the past year, Kayla, Inc., has sales of $43,847, interest expense of $2,840, cost of goods sold of $14,384, selling and administrative expense of $10,531, and depreciation of $4,530. If the tax rate is 38 percent, what is the operating cash flow?

Answer 1

Answer:

$30,357.56

Explanation:

EBIT = $43,847 − & 14,384 − 10,531 − $4,530 = $14,402

EBT = $14,402 − $2,840= $11,562

Taxes = $11,562 (.38) = $4,393.56

OCF = $14,402 +$11,562 +$4,393.56 =$30,357.56

Answer 2

Answer:

OCF $9 977

Explanation:

Operating Cash Flow is the amount of cash generated by the business form it ongoing operations , there two methods to calculating it Direct Method and the Indirect method for the purposes of this calculateion the direct method will be used

OCF =

sales 43847

- cos (14384)

- selling and administrative expense (10531)

Profit before interes and taxes 19 932

- interest expense (2840)

Profit before tax 16 092

- taxes paid (16092*0.38)=6115

Net Operating Cash flow $9 977