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B Last year, BFA Corporation had net sales of $3,700,000 and cost of goods sold of $2,000,000. Its depreciation charge was $600,000 and selling, general, and administrative (SG&A) expense was $800,000. If the interest charge was $30,000 and the tax rate is 35 percent, what was the operating cash flow? Ignore any carry track or carry forward of loss for tax purposes. A. $675,500 $708,000 C. $740,500 D. $773,000 I E. $805,500 F. $838,000 G. $870,500 H. $903,000

B Last year, BFA Corporation had net sales of $3,700,000 and cost of goods sold of $2,000,000. Its depreciation charge was $600,000 and selling, general, and administrative (SG&A) expense was $800,000. If the interest charge was $30,000 and the tax rate is 35 percent, what was the operating cash flow? Ignore any carry track or carry forward of loss for tax purposes. A. $675,500 $708,000 C. $740,500 D. $773,000 I E. $805,500 F. $838,000 G. $870,500 H. $903,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B Last year, BFA Corporation had net sales of $3,700,000 and cost of goods sold of $2,000,000. Its depreciation charge was $600,000 and selling, general, and administrative (SG&A) expense was $800,000. If the interest charge was $30,000 and the tax rate is 35 percent, what was the operating cash flow? Ignore any carry track or carry forward of loss for tax purposes. A. $675,500 $708,000 C. $740,500 D. $773,000 I E. $805,500 F. $838,000 G. $870,500 H. $903,000
Transcribed Image Text:B Last year, BFA Corporation had net sales of $3,700,000 and cost of goods sold of $2,000,000. Its depreciation charge was $600,000 and selling, general, and administrative (SG&A) expense was $800,000. If the interest charge was $30,000 and the tax rate is 35 percent, what was the operating cash flow? Ignore any carry track or carry forward of loss for tax purposes. A. $675,500 $708,000 C. $740,500 D. $773,000 I E. $805,500 F. $838,000 G. $870,500 H. $903,000
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