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You work for Diversified Industries, and you must estimate the Year 1 operating cash flow for a p...

You work for Diversified Industries, and you must estimate the Year 1 operating cash flow for a project with the following data. What is the Year 1 after-tax net operating cash flow? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box. Sales revenues $155,000 Depreciation $44,000 Cash operating costs $68,000 Tax rate 38%

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Answer #1

Sales revenue = 155000

Less: Cash operating costs = 68000

Less depreciation 44000

Profit before tax = 43000

Less: Tax 38% = 16340

Net Income = 26660

Add back depreciation 44000

Operating cash flow 70660

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