Answered: Crystal Cove Inn has sales of…

Crystal Cove Inn has sales of $1,250,000 and a profit margin of 6%. The annual depreciation expense is $120,000. What is the amount of the operating cash flow if the company has no long-term debt?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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Accurate answer

Crystal Cove Inn has sales of
$1,250,000 and a profit margin of
6%. The annual
depreciation
expense is $120,000. What is the
amount of the operating cash flow if
the company has no long-term
debt?

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SunTech Energy has total sales of $1,500 and costs of $850. Depreciation is $200, and the tax rate is 30%. The firm does not have any interest expense. What is the operating cash flow (OCF)?