Your firm has net income of $420 on total sales of$1,600. Costs are $900, and depreciation is $150. Thetax rate is 28%. The firm does not have interestexpenses.What is the operating cash flow (OCF)?A) $570B) $560C) $420D) $600

Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) represents the cash…

Answered: Your firm has net income of $420 on…

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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Your firm has net income of $420 on total sales of $1,600. Costs are $900, and depreciation is $150. The tax rate is 28%. The firm does not have interest expenses. What is the operating cash flow (OCF)? A) $570 B) $560 C) $420 D) $600