Sarah's Shop has sales of $45,000, costs of $32,000, depreciation expense of $4,000, and interest expense of $2,000. If the tax rate is 25 percent, what is the operating cash flow, OCF?
Sarah's Shop has sales of $45,000, costs of $32,000, depreciation expense of $4,000, and interest expense of $2,000. If the tax rate is 25 percent, 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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
Transcribed Image Text:Sarah's Shop has sales of $45,000, costs of $32,000, depreciation
expense of $4,000, and interest expense of $2,000. If the tax rate is 25
percent, what is the operating cash flow, OCF?
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