Hailey, Inc., has sales of $19,650, costs of $9,380, depreciation expense of $2,050, and interest expense of $1,540. 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,

Net operating cash-flow = $6,392

Explanation:

Giving the following information:

Sales of $19,650.

Costs of $9,380

Depreciation expense of $2,050.

Interest expense of $1,540.

The tax rate is 35 percent

Cash - flow:

Sales 19650

Cost = 9380 (-)

Interest = 1540 (-)

Depreciation = 2050 (-)

EBT = 6680

Tax = (6680*0.35) = 2338 (-)

EAT = 4342

Depreciation = 2050 (+)

Net operating cash-flow = 6392