A project has annual depreciation of $24,300, costs of $100,100, and sales of $147,500. The applicable tax rate is 34 percent. What is the operating cash flow?
Question
Solution 1
To calculate the operating cash flow (OCF), you can use the formula:
OCF = (Sales - Costs - Depreciation) * (1 - Tax Rate) + (Depreciation)
Here are the steps to calculate it:
- Subtract the costs and depreciation from the sales: 100,100 - 23,100. This is the earnings befo Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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