Question

Hailey, Inc., has sales of $406,300, COGS (Cost of Goods Sold) of $218,900, other costs of...

Hailey, Inc., has sales of $406,300, COGS (Cost of Goods Sold) of $218,900, other costs of $38,600, depreciation expense of $23,800, interest expense of $21,200, and taxes of $34,100.

What is the Operating Cash Flow? Please show work and do not use excel.

A.

$90,900

B.

$96,700

C.

$114,700

D.

$93,500

E.

$102,600

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Homework Answers

Answer #1

Income statement

Sales 406,300
Cost of goods sold - 218,900
Gross profit 187,400
Other costs - 38,600
Depreciation expense - 23,800
Operating income 125,000
Interest expense - 21,200
Income before tax 103,800
Income tax expense - 34,100
Net income $69,700

Operating cash flow = Net income + Depreciation

= 69,700 + 23,800

= $93,500

Correct option is (D)

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