Daniel's Market has sales of $36,000, costs of$28,000, depreciation expense of $3,000, andinterest expense of $1,500. If the tax rate is 30percent, what is the operating cash flow, OCF?

To calculate the Operating Cash Flow (OCF), we use the formula: OCF = (Sales − Costs) × (1 − Tax…

Answered: Daniel's Market has sales of $36,000,…

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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Daniel's Market has sales of $36,000, costs of $28,000, depreciation expense of $3,000, and interest expense of $1,500. If the tax rate is 30 percent, what is the operating cash flow, OCF?