Answered: Harrison Solutions, Inc. has sales of…

Harrison Solutions, Inc. has sales of $55,000, costs of $27,500, depreciation expense of $3,500, and interest expense of $2,200. If the tax rate is 30%, what is the operating cash flow (OCF)?

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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Question

100%

What is the operating cash flow for this financial accounting question?

Harrison Solutions, Inc. has sales of $55,000, costs of
$27,500, depreciation expense of $3,500, and interest
expense of $2,200. If the tax rate is 30%, what is the
operating cash flow (OCF)?

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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