cash flow

Sales  $    43,800
Costs        22,700
Depreciation Expense          2,100
Interest Expense 1,600
Tax rate 35%

.

 

If the tax rate is 35 percent, what is the operating cash flow, or OCF? Must show each step in a table

 

 

Explain why depreciation and interest expense are included in the income statement (or net income amount), but not in operating cash flow.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s