Question

ABC, Inc. is considering purchase of a new equipment. The sales are expected to be $816446 and the total cash expenses are expected to be $393782. The annual depreciation is $60655 and the tax rate is 25.6%. What is the operating cash flow? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Answer 1

	Operating cash flow = Net income + Depreciation
i	sales		816,446.00
ii	Cash Expenses		393,782.00
iii	Depreciation		60,655.00
iv=i-ii-iii	Profit before tax		362,009.00
v=iv*25.6%	Tax @ 25.6%		92,674.30
vi=iv-v	Net income		269,334.70
vii	Add : depreciation		60,655.00
viii=vi+vii	Operating cash flow		329,989.70
	therefore answer =		329,989.70