Groff Incorporated, has sales of $51,500, costs of $23,600, depreciation expense of $2,400, and interest expense of $2,150. If the tax rate is 21 percent, what is the operating cash flow, or OCF?
Groff Incorporated, has sales of $51,500, costs of $23,600,
The focus of operating cash flows is on financial inflows and outflows associated with a company's primary business operations, such as buying and selling products, offering services, and paying personnel. Borrowing, investing, financing, purchasing capital goods, and paying dividends are all separated from the operating cash flows part and reported separately. On a company's statement of cash flows, which is segmented into cash flows from operations, investing, and financing, operating cash flow can be noted.
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