Question

For the past year, Kayla, Inc., has sales of $44,822, interest expense of $3,230, cost of...

For the past year, Kayla, Inc., has sales of $44,822, interest expense of $3,230, cost of goods sold of $15,259, selling and administrative expense of $11,006, and depreciation of $5,255. If the tax rate is 38 percent, what is the operating cash flow?

$10,072

$6,245

$11,500

$13,357

$14,730

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The operating cash flow is computed by using the below mentioned formula:

= Earnings before interest and tax + Depreciation - tax expenses

Earnings before interest and tax is computed as follows:

= Sales - cost of goods sold - selling and administrative expense - depreciation

= $ 44,822 - $ 15,259 - $ 11,006 - $ 5,255

= $ 13,302

The tax expenses is computed as follows:

= ( Earnings before interest and tax - interest expenses ) x tax rate of 38%

= ( $ 13,302 - $ 3,230 ) x 38%

= $ 3,827.36

So, the operating cash flow will be:

= $ 13,302 + $ 5,255 - $ 3,827.36

= $ 14,730 Approximately

Feel free to ask in case of any query relating to this question

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
find the operating cash flow for the year for Harper brothers, Inc. if it has sales...
find the operating cash flow for the year for Harper brothers, Inc. if it has sales revenue of $316,000,000, cost of goods sold of $138,400,000, sales and administrative of $40,700,00, depreciation expense of $63,900,000, and a tax rate of 40%. the operating cash flow is
Whistler's sales for this past year were $21,381. The interest expense was $248, costs of goods...
Whistler's sales for this past year were $21,381. The interest expense was $248, costs of goods sold were $9,784, selling and general expenses were $1,208, depreciation was $811, and the addition to retained earnings was $325. The firm sold $500 of new stock shares and repurchased $125 of outstanding shares. What was the cash flow to stockholders if the tax rate was 34 percent? Question 21 options: $208.28 $725.50 $202.72 $235.55 $670.25
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?
Disturbed, Inc., had the following operating results for the past year: sales = $22,563; depreciation =...
Disturbed, Inc., had the following operating results for the past year: sales = $22,563; depreciation = $1,360; interest expense = $1,096; costs = $16,515. The tax rate for the year was 40 percent. What was the company's operating cash flow?
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.)
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   $   
Find the operating cash flow for the year for Harper? Brothers, Inc. if it had sales...
Find the operating cash flow for the year for Harper? Brothers, Inc. if it had sales revenue of $311,900,000?, cost of goods sold of $147,600,000?, sales and administrative costs of $40,400,000?, depreciation expense of $68,400,000?, and a tax rate of 40%.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT