Question

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?

Answer #1

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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A proposed new project has projected sales of $213,000, costs of
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Calculate operating cash flow using the four different approaches.
(Do not round intermediate calculations.)
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Hammett, Inc., has sales of $34,630, costs of $10,340,
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Required:
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$

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Calculate operating cash flow using the four different approaches.
Requirement 1: The common calculation Approach (Do not round your
intermediate calculations): Requirement 2: The Bottom-Up Approach
(Do not round your intermediate calculations): Requirement 3: The
Top-Down Approach (Do not round your intermediate calculations):
Requirement 4: The Tax-Shield Approach (Do not round your
intermediate calculations):

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intermediate calculations): Requirement 2: The Bottom-Up Approach
(Do not round your intermediate calculations): Requirement 3: The
Top-Down Approach (Do not round your intermediate calculations):
Requirement 4: The Tax-Shield Approach (Do not round your
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