CFIN
CFIN
5th Edition
ISBN: 9781305661639
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Chapter 2, Problem 5PROB
Summary Introduction

To determine: Crooked Golf’s net cashflow

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Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000, depreciation expense of $104,000, and taxes of $99,000 due to a tax rate of 25%. What are your pro forma earnings? What is your pro forma free cash flow? The pro forma free cash will be $___? (round to the nearest dollar)
A-2 Ad’s most recent income statement shows that net income was $42,000, depreciation was $100,000, and taxes were $28,000. What was A-2 Ad’s net cash flow?
Hammett, Inc., has sales of $74,058, costs of $24,908, depreciation expense of $6,308, and interest expense of $1,766. If the tax rate is 31 percent, what is the operating cash flow, or OCF?
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