Question

​A. Daniel's Market has sales of $46,600, costs of $18,400, depreciation expense of $2,100, and interest...

​A. Daniel's Market has sales of $46,600, costs of $18,400, depreciation expense of $2,100, and interest expense of $1,600. If the tax rate is 40 percent, what is the operating cash flow, OCF?

Group of answer choices

​$13,500

​$14,200

​$28,900

​$38,000

​$18,400

B. ​Is there a difference between net income and operating cash flow in the previous problem? If so, why?

Group of answer choices

​Yes, net income is higher than operating cash flow because of the tax deductibility of depreciation and interest expense.

​Yes, net income is higher than operating cash flow because depreciation is a non-cash expense.

​Yes, net income is lower than operating cash flow because of the tax deductibility of depreciation and interest expense.

​No, net income and operating cash flow are the same.

​Yes, net income is lower than operating cash flow because interest is a non-cash expense.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense...
Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700. If the tax rate is 22 percent, what is the operating cash flow, or OCF? Logano Driving School’s 2017 balance sheet showed net fixed assets of $4 million, and the 2018 balance sheet showed net fixed assets of $3.3 million. The company’s 2018 income statement showed a depreciation expense of $319,000. What was net capital spending for 2018?
Benson, Inc., has sales of $45,180, costs of $14,460, depreciation expense of $3,310, and interest expense...
Benson, Inc., has sales of $45,180, costs of $14,460, depreciation expense of $3,310, and interest expense of $2,420. The tax rate is 24 percent. What is the operating cash flow, or OCF?
Hammett, Inc., has sales of $78,888, costs of $27,296, depreciation expense of $7,896, and interest expense...
Hammett, Inc., has sales of $78,888, costs of $27,296, depreciation expense of $7,896, and interest expense of $4,069. If the tax rate is 36 percent, what is the operating cash flow, or OCF?
Pompeii, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense...
Pompeii, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the tax rate is 23 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)
Pompeii, Inc., has sales of $51,500, costs of $23,600, depreciation expense of $2,400, and interest expense...
Pompeii, Inc., has sales of $51,500, costs of $23,600, depreciation expense of $2,400, and interest expense of $2,150. If the tax rate is 21 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)
Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense...
Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700. If the tax rate is 22 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)
Pompei, Inc. has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense...
Pompei, Inc. has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700. If the tax rate is 22%, what is the operating cash flow, OCF? A) $19,200 B) $20,900 C) $18,876 D) $4,224
Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and interest expense...
Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and interest expense of $1,750. If the tax rate is 35 percent. (Enter your answer as directed, but do not round intermediate calculations.) Required: What is the operating cash flow? (Round your answer to the nearest whole number, e.g. 32.)   Operating cash flow   $   
Your firm has sales of $220,400, costs of goods sold of $135,000, interest expense of $3,400,...
Your firm has sales of $220,400, costs of goods sold of $135,000, interest expense of $3,400, depreciation expense of $10,500 and a tax rate of 34%. What is your firm's operating cash flow (OCF)? A) $81,300 B) $49,734 C) $63,504 D) $61,090
Forecasted depreciation expense, commonly estimated as: [(Current year depreciation expense / Prior year PPE, net) x...
Forecasted depreciation expense, commonly estimated as: [(Current year depreciation expense / Prior year PPE, net) x Current year PPE, net], is added back to net income in the cash flow from operating activities section of the Statement of Cash Flows. Group of answer choices True False
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT