Use the following to answer questions 7-15: 1999 2000 Sales $2900 $3300 Cogs $20

ID: 2809214 • Letter: U

Question

Use the following to answer questions 7-15:

1999 2000

Sales $2900 $3300

Cogs $2030 $2310

Interest $410 $420

Dividends $56 $79

Depreciation $290 $330

Cash $250 $150

Receiviables $242 $412

Current liabilities $900 $1100

Inventory $1015 $900

Long Term Debt $3200 $3100

Net Fixed Assets $6000 $5700

Tax Rate 34% 34%

What is operating cash flow for 2000?

A) $ 248

B) $ 662

C) $ 908

D) $1.072

E) $1,375

will you really break down how to get operating cash flow. I cant seem to get it

EBIT = Sales - Cost of Goods Sold - Depreciation Expense
EBIT = $3,300 - $2,310 - $330
EBIT = $660

EBT = EBIT - Interest Expense
EBT = $660 - $420
EBT = $240

Taxes = EBT * tax rate
Taxes = $240 * 34%
Taxes = $82

Net Income = EBT - Taxes
Net Income = $240 - $82
Net Income = $158

Operating Cash Flow = EBIT + Depreciation - Taxes
Operating Cash Flow = $660 + $330 - $82
Operating Cash Flow = $908

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