The Beach House has sales of $784,000 and a profit margin of 8 percent. The annu

Question

The Beach House has sales of $784,000 and a profit margin of 8 percent. The annual depreciation expense is $14,000. What is the amount of the operating cash flow if the company has no long-term debt? Answer A.   $68,760 B.   $72,240 C.   $74,240 D.   $76,720 The Beach House has sales of $784,000 and a profit margin of 8 percent. The annual depreciation expense is $14,000. What is the amount of the operating cash flow if the company has no long-term debt? The Beach House has sales of $784,000 and a profit margin of 8 percent. The annual depreciation expense is $14,000. What is the amount of the operating cash flow if the company has no long-term debt?   $68,760   $72,240   $74,240   $76,720 A.   $68,760 B.   $72,240 C.   $74,240 D.   $76,720

Explanation / Answer

Hi,

Please find the answer as follows:

Operating Cash Flow = Net Income + Depreciation = 784000*.08+ 14000 = 76720

Option D (76720) is correct.

Thanks.

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