Question

Marcy Distribution has total sales of $105,000, costs are $76,000, and depreciation is $8,500. The tax...

Marcy Distribution has total sales of $105,000, costs are $76,000, and depreciation is $8,500. The tax rate is 25 percent. The interest expense is $1,500. What is the operating cash flow?

$24,250

$19,356

$22,780

$25,311

$23,864

Homework Answers

Answer #1
Sales $      105,000
Less:
Costs $        76,000
Depreciation $          8,500
EBIT $        20,500
Less: Interest $          1,500
Profit before tax $        19,000
Less: Tax payable @ 34% $          4,750
Net income $        14,250
EBIT $        20,500
Less: Tax payable @ 34% $          4,750
Add: Depreciation $          8,500
Operating cash flow $   24,250
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