Question

Burns Industries has total sales of $258,200 and costs of $137,800 (Note: costs do not include depreciation expense). Depreciation expense is $45,407 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow (OCF)?  DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR.

Answer 1

OCF = (sales-cost-depr ex)*(1-tax rate)+depr

=(258200-137800-45407)*(1-0.34)+45407

=

94902