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18 October, 08:26

Hailey, Inc., has sales of $19,650, costs of $9,380, depreciation expense of $2,050, and interest expense of $1,540. Assume the tax rate is 35 percent. What is the operating cash flow, or OCF? (Do not round intermediate calculations and round your answer to the nearest whole number,

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  1. 18 October, 08:49
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    Net operating cash-flow = $6,392

    Explanation:

    Giving the following information:

    Sales of $19,650.

    Costs of $9,380

    Depreciation expense of $2,050.

    Interest expense of $1,540.

    The tax rate is 35 percent

    Cash - flow:

    Sales 19650

    Cost = 9380 (-)

    Interest = 1540 (-)

    Depreciation = 2050 (-)

    EBT = 6680

    Tax = (6680*0.35) = 2338 (-)

    EAT = 4342

    Depreciation = 2050 (+)

    Net operating cash-flow = 6392
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