Outdoor Sports paid S12,500 in dividends and S9,310 in interest over the past year. Sales totaled S361,820 with costs of S267,940. The depreciation expense was S16,500 and the tax rate was35 percent. What was the amount of the operating cash flow?
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Outdoor Sports paid S12,500 in dividends and S9,310 in interest over the past year. Sales totaled S361,820 with costs of S267,940. The
percent.
What was the amount of the operating cash flow?
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