Hot and Cold has annual sales of $847,000, annual depreciation of $47,000, and net working capital of $43,000. The tax rate is 21 percent and the profit margin is 7.3 percent. The firm has no interest expense. What is the amount of the operating cash flow

The amount of the operating cash flow is $108,831

Explanation:

In this question, we are tasked with calculating the amount of the operating cash flow.

Firstly, we calculate the net income.

Mathematically, net income = Sales × %  profit margin

From the question, sales = $847,000

% profit margin = 7.3% = 7.3/100 = 0.073

Net income = $847,000 × 0.073 = $61,831

Finally, Operating cash flow = Net income + Depreciation

From the question, depreciation = $47,000

Plugging this alongside the net income,

Operating cash flow = $61,831 + $47,000 = $108,831

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

i would say their habit of breaking down.