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A debt-free firm has profit for the year of $210 000, taxes of $55 822.78 and depreciation of $42 000. What is the operating cash flow?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 9P: Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current...

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Question

A debt-free firm has profit for the year of $210 000, taxes of $55 822.78 and depreciation of $42 000. What is the operating cash flow?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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