Question

Using the income statement information, what is operating cash flow (for capital budgeting purposes)?


Using the income statement information, what is operating cash flow (for capital budgeting purposes)? 

Revenues $500 

Expenses (COGS, SGA) 275 

Depreciation 100 

EBIT Interest 25 

EBT 

Taxes 30% 

Net Income  

1) $225 

2) None of the 

3) $125 

4) $70 

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Answer #1

Calculate net income

Revenue 500
CGS -275
Depreciation -100
Interest expense -25
Income before tax 100
Income tax -30
Net income 70

So answer is 4) $70

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