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A project has annual depreciation of $24,700, costs of $100,700, and sales of $148,500. The applicable...

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Finance

A project has annual depreciation of $24,700, costs of $100,700,and sales of $148,500. The applicable tax rate is 35 percent. Whatis the operating cash flow?

$31,070

$47,125

$105,170

$39,715

$25,375

Answer & Explanation Solved by verified expert
4.0 Ratings (561 Votes)

Sales           148,500
Less: Cost           100,700
Gross profit             47,800
Less: Depreciation             24,700
EBIT             23,100
Less: Interest                      -  
Income Before Income Tax (EBT)             23,100
Less: Income Tax@35%               8,085
Net Income             15,015

Operating Cash Flow = Net Income +/-Changes in assets & Liabilities+Non cash expenses

= 15015+24700

=  $39,715
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Transcribed Image Text

A project has annual depreciation of $24,700, costs of $100,700,and sales of $148,500. The applicable tax rate is 35 percent. Whatis the operating cash flow?$31,070$47,125$105,170$39,715$25,375

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