Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $
ID: 2815772 • Letter: H
Question
Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and interest expense of $1,750. If the tax rate is 35 percent. (Enter your answer as directed, but do not round intermediate calculations.)
What is the operating cash flow? (Round your answer to the nearest whole number, e.g. 32.)
Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and interest expense of $1,750. If the tax rate is 35 percent. (Enter your answer as directed, but do not round intermediate calculations.)
Explanation / Answer
Hello Sir/ Mam
YOUR REQUIRED ANSWER IS $17,283
Operating cash Flows = EBIT + Depreciation - Tax
Hence, Operating Cash Flows = $21,770 + $2,520 - $7007
=$17,283
I hope this solves your doubt.
Feel free to comment if you still have any query.
Do give a thumbs up if you find this helpful.
Sales $34,630.00 - Costs $10,340.00 = Gross Profit $24,290.00 - Depreciation $2,520.00 = EBIT $21,770.00 - Interest Expense $1,750.00 = EBT $20,020.00 - Tax $7,007.00 = EAT $13,013.00Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.