Williams, Inc., has sales of $25,300, costs of $9,100, depreciation expense of $

Question

Williams, Inc., has sales of $25,300, costs of $9,100, depreciation expense of $1,700, and interest expense of $950. If the tax rate is 40%, what is the operating cash flow or OCF?

Sales $25,300
Costs $9,100
Depreciation Expense $1,700
EBIT $14,500 (my calculation)
Interest Expense $950
EBT $13,550 (my calculation)
Taxes @ 40% $5,420 (my calculation)
Net Income $8,130 (my calculation
Tax Rate 40%

Operating Cash Flow =??????
Above numbers are given unless indicated otherwise (i.e. my calculation)

Explanation / Answer

(25,300 - 9,100 - 1,700 - 950) * (1 - 0.4) = 8130 $

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