Hailey, Inc., has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. Assume the tax rate is 35 percent. What is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)

Question

Jakobe Davidson

Business

6 May, 13:35

Hailey, Inc., has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. Assume the tax rate is 35 percent. What is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)

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Answers (1)

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Leonard Arroyo · Answer 1

Net operating income = 4,134

Explanation:

Giving the following information:

Hailey, Inc., has sales of $19,570, costs of $9,460, depreciation expense of $2,130, and interest expense of $1,620. Assume the tax rate is 35 percent.

Sales = 19,570

COGS = 9,460

Gross profit = 10,110

Depreciation expense = 2,130

Interest expense = 1,620

EBT = 6,360

Tax = 2,226

Net operating income = 4,134