So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense ofS63,200 and interest expense of $22,300. If the tax rate is 35%,(a) What is the operating cash flow or OCF?(b) Explain why interest paid is not a component of operating cash flow.

The question is based on the concept of Financial Management.

Answered: So Long, Inc, has sales of $334,000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 and interest expense of $22,300. If the tax rate is 35%, (a) What is the operating cash flow or OCF? (b) Explain why interest paid is not a component of operating cash flow.