You work as an accountant for a small business. The owner of the company has asked you to give her the operating cash flow for the company for the fiscal quarter that just ended. Upon review of the relevant documents, you determine that the company's earnings before taxes and interest for the quarter were $230,000, it depreciated $5,000 worth of equipment, and has paid estimated taxes of $20,000. There was no amortization. What is the operating cash flow for the last quarter? Explain your answer.

You work as an accountant for a small business. The owner of the company has asked you to give her the operating cash flow for the company for the fiscal quarter that just ended. Upon review of the relevant documents, you determine that the company's earnings before taxes and interest for the quarter were $230,000, it depreciated $5,000 worth of equipment, and has paid estimated taxes of $20,000. There was no amortization. What is the operating cash flow for the last quarter? Explain your answer.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter4: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 4A: Your client is preparing financial statements to show the bank. You know that he has incurred a...

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