So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 and interest expense of $22,300. If the tax rate is 35%, (a) What is the operating cash flow or OCF? (b) Explain why interest paid is not a component of operating cash flow.
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![Question 6
So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 and
interest expense of $22,300. If the tax rate is 35%,
(a) What is the operating cash flow or OCF?
(b) Explain why interest paid is not a component of operating cash flow.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdcaf12d-ccb8-448e-8eae-501e22282065%2Fb499526d-925f-428a-b4c3-18e3a6d1fc69%2Fri9d1qe_processed.jpeg&w=3840&q=75)
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- So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of S63,200 and interest expense of $22,300. If the tax rate is 35%, (a) What is the operating cash flow or OCF? (b) Explain why interest paid is not a component of operating cash flow.Consider the following income statement: Sales $ 383,208Costs 249,312Depreciation 56,700Taxes 25% Calculate the EBIT. Calculate the net income. Calculate the OCF. What is the depreciation tax shield? Pls fastCalculating OCF (LO3) Fergus Inc. has sales of $39,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax rate is 35%, what is the operating cash flow, or OCF?
- ok ences Mc Graw Hill Graff, Incorporated, has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the tax rate is 23 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.) Operating cash flow 2 #3 3 89 $ 4 000 000 % 5 8The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?QUESTION 1 Given the following information Please calculate the Free Cash Flow to Equity EBIT Net Income Tax rate Depreciation Capital expenditure 2207.9 1513.5 21.80% 1807.1 954.6 Change in non-cash Working Capital -2176.3 Change in long term debt Interest Expense Liabilities Total Long Term debt Total Assets 4755 5470 3902 5628 927.6 395.3 24511.8 13220.6 26168.2
- Q1. Complete the statement provided, for a tax rate of 20% and calculate the Operating cash flow 2019 Income Statement 201,200 108,660 20,790 27,300 Sales Cost of goods sold Selling & Administrative Depreciation EBIT Interest 5,520 EBT Таxes NI Dividends 9,343 21,801 Addition to retained profitsJannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of P250,000 and interest expenses of P55,000. If Jannah's tax rate is 34% and the income statement is complete, what is Jannah's operating cash flow? A. P246,700 B. P283,000 C. P33,000 D. P300,000A. 20Y5 Annual net cash flow is incorrect. B. Present value of annual net cash flow Less investment are incorrect. a. For each year, subtract the driver salaries and operating costs from the revenues. For 20Y3 only, add the residual value. b. Multiply the present value of $1 factor for each year by that year's net cash flow (from a). Subtract the amount to be invested from the total present value of the net cash flow.
- Jannah Company has sales of P1,000,000, cost of goods sold ofP700,000, depreciation expenses of P250,000 and interest expenses ofP55,000. If Jannah’s tax rate is 34% and the income statement iscomplete, what is Jannah's operating cash flow? A. P283,000B. P246,700C. P33,000D. P300,0005.1 Calculate the Payback Period (expressed in years, months and days). 5.2 Calculate the Accounting Rate of Return on average investment (expressed to two decimal places). 5.3 Identify TWO (2) reasons why the company should not use the accounting rate of return to evaluate capital investments. 5.4 Calculate the Net Present Value. 5.5 Calculate the Internal Rate of Return (expressed to two decimal places) if the net cash flows are R320 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION Purchase price R1 000 000 Expected useful life 5 years Scrap value 0 Minimum required rate of return 15% Expected net cash inflows: Year 1 R250 000 Year 2 R260 000 Year 3 R300 000 Year 4 R400 000 Year 5 R380 000 Expected net profit: Year 1 R50 000 Year 2 R60 000 Year 3 R100 000 Year 4 R200 000 Year 5 R180 000What is the annual operating free cash flow if operating revenues increase by $1.2 million, operating expenses (ex-depreciation) go up by $0.7 million, and depreciation goes up by $0.32 million? The tax rate is 31%. Express in $ million, to the nearest $0.001 mil. Drop the $ sign. E.g., if your answer is $506,500, record it as 0.507.
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