Your firm has net income of $260 on total sales of $1,160. Costs are $650 and depreciation is...

Question:

Your firm has net income of $260 on total sales of $1,160. Costs are $650 and depreciation is $110. The tax rate is 35 percent. The firm does not have interest expenses.

What is the operating cash flow?

Operating cash flow

Operating cash flow is the only activity that can use indirect method. This involves cash transaction on the production level or phase,

Answer and Explanation:

The operating cash flow using indirect method is $370

Net income + Non Cash expense

260 + 110 = 370


Learn more about this topic:

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Operating Cash Flow: Definition & Examples

from Finance 101: Principles of Finance

Chapter 10 / Lesson 4
8.9K

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