Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $80,000,000, cost of goods sold of $35,000,000, sales and administrative costs of $6,400,000, depreciation expense of $7,600,000, and a tax rate of 30%. Manning Company reported the following information for 2019:Cash provided by operating activities$425,000Cash used by investing activities$200,000Average debt maturing over the next 5 years$80,000Capital expenditures$275,000Cash dividends$60,000Required:Compute free cash flow and the cash flow adequacy ratio.

1.Given,Sales Revenue: $80,000,000Cost of Goods Sold: $35,000,000Sales and Administrative Costs:…

Answered: Find the operating cash flow for the…

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 7MC

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Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of $80,000,000, cost of goods sold of $35,000,000, sales and administrative costs of $6,400,000, depreciation expense of $7,600,000, and a tax rate of 30%.

Cash provided by operating activities	$425,000
Cash used by investing activities	$200,000
Average debt maturing over the next 5 years	$80,000
Capital expenditures	$275,000
Cash dividends	$60,000