Your firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. The tax rate is 34 percent. There are no interest expenses or other income. What is the operating cash flow?

Thus, Operating cash flow for company is $7,510.20.

Explanation:

Total Sales = $22,980

Cost of goods sold = $14,715

Depreciation = $6,045

Profit before tax = Total Sales – Cost of goods sold – Depreciation  

= $22,980 – $14,715 – $6,045

=$2,220

Profit before tax is $2,220

Tax rate = 34%

Net profit = profit before tax × (1 – 34%)

= $1,465.20

Net profit for company is $1,465.20.

Operating cash flow = Net profit + Depreciation

= $1,465.20 + $6,045  

= $7,510.20

Thus, Operating cash flow for company is $7,510.20.

don't use it that much

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total