Asked by Brian Metroz on May 31, 2024
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Ann's Custom Catering has sales of $214,000, depreciation of $9,000, and net working capital of $16,000. The firm has a tax rate of 34% and a profit margin of 7%. The firm has no interest expense. What is the amount of the operating cash flow?
A) $7,980
B) $23,980
C) $30,350
D) $39,980
E) $53,700
Operating Cash Flow
This measures the cash generated by a company's normal business operations, indicating whether it is capable of maintaining and growing its operations.
Depreciation
The accounting process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.
Tax Rate
The percentage at which an individual or corporation is taxed by the government on their income or profits.
- Learn the process of determining operating cash flow for diverse financial situations.
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Learning Objectives
- Learn the process of determining operating cash flow for diverse financial situations.
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