Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. disturbed, inc., had the following operating resul

disturbed, inc., had the following operating results for the past year: sales = $22,616; depreciation... Question:...

Free

80.2K

Verified Solution

Question

Finance

disturbed, inc., had the following operating results for thepast year: sales = $22,616; depreciation... Question: Disturbed,Inc., had the following operating results for the past year: sales= $22,616; deprecia... Disturbed, Inc., had the following operatingresults for the past year: sales = $22,616; depreciation = $1,480;interest expense = $1,192; costs = $16,575. The tax rate for theyear was 38 percent. What was the company's operating cashflow?

$2,089 $3,369 $4,761 $7,321 $3,213

Answer & Explanation Solved by verified expert
3.8 Ratings (478 Votes)

Solution:
Answer is 3rd option $4,761
Working Notes:
A Sales 22,616
B Costs 16,575
C Depreciation 1,480
D=A-B-C Earnings before interests and taxes (EBIT) 4,561
E Interest expense 1,192
F=D-E Earnings before taxes (EBT) 3,369
G = F x 38% Tax ( 38% x 3,369) 1280.22
H = F-G Net Income 2,088.78
operating cash flow
I Earnings before interests and taxes (EBIT) 4,561
J Add: Depreciation 1,480
K Less: Taxes 1280.22
L=I+J-K operating cash flow 4,760.78
4,761 (rounded off)
Notes: Operating cash flow is actual cash flow from operation as depreciation expense is non cash expense and interest expense is financing expense so it is not considered in operating cash flow calculation
Please feel free to ask if anything about above solution in comment section of the question.

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

disturbed, inc., had the following operating results for thepast year: sales = $22,616; depreciation... Question: Disturbed,Inc., had the following operating results for the past year: sales= $22,616; deprecia... Disturbed, Inc., had the following operatingresults for the past year: sales = $22,616; depreciation = $1,480;interest expense = $1,192; costs = $16,575. The tax rate for theyear was 38 percent. What was the company's operating cashflow?$2,089 $3,369 $4,761 $7,321 $3,213

Other questions asked by students

Q

Adela borrowed $10,500 at 12% ordinary interest for 170 days. After 40 days, she made a...

Finance
Q

A puma leaps from one cliff ledge to another, the second ledge leapt to is 0.7m...

Physics
Q

in the definition of radiative lifetime below. what do they mean by depopulation. do they mean...

Physics
Q

Derive the small-signal model for the buck-boost converter. Then further derive Gvu(s) and Gvd(s).

Electrical Engineering
Q

An electric dipole consisting of two equal and opposite point charges q m and dipole...

Physics
Q

Which two consecutive whole numbers does ?39 lie between? Why?5 and 6 because 39 falls...

Basic Math
Q

X 1 Let f x 4x 1 g x x 1 h x 3 Find...

Calculus
Q

nd three consecutive odd integers such that 10 times the first plus 10 mes the...

Algebra
Q

Use the following financial data to calculate the Net Profits: $34,951,691.62 = Sales Revenue $30,731,988.09=...

Accounting
Q

$250 per pound. Each month's ending raw materials inventory shoufd equal 40 ofi. of the...

Accounting
Q

Concord Company is a leading manufacturer of sunglasses. One of Concord's products protects the eyes...

Accounting
Q

Listed below are the overhead widths (in cm) of seals measured from photographs and the...

Accounting