A project has projected sales of $69,000, costs of $51,500, depreciation expense of $6,900, and a tax rate of 34 percent. What is the operating cash flow for this project?
Particulars | Amount | Cash flow |
Sales | 69,000 | 69,000 |
Expenses: | ||
Costs | 51,500 | (51,500) |
Depreciation | 6,900 | |
Total expenses | 58,400 | |
Income before tax | 10,600 | |
Tax expense | 3,604 | (3,604) |
Net income | 6,996 | |
Operating cash flow | 13,896 |
Operating cash flow is 13,896
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