Your firm has net income of $315 on total sales of $1,260. Costs are $700 and depreciation is $110. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

$425

Explanation:

Data provided as per the question is given below:

Net income = $315

Depreciation = $110

The computation of operating cash flow is as shown below:-

Operating cash flow = Net income + Depreciation

= $315 + $110

= $425

Therefore for computing the operating cash flow we simply added net income with depreciation.

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

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