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21 April, 09:32

Weiland Co. shows the following information on its 2016 income statement: sales = $162,500; costs = $80,000; other expenses = $3,300; depreciation expense = $9,000; interest expense = $6,500; taxes = $22,295; dividends = $8,150. In addition, you're told that the firm issued $4,500 in new equity during 2016 and redeemed $7,700 in outstanding long-term debt. a. What is the 2016 operating cash flow

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  1. 21 April, 10:35
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    The 2016 operating cash flow is $56,905

    Explanation:

    The computation of the operating cash flow is shown below:

    Operating cash flow = Sales - costs - other expenses - depreciation expenses - taxes + depreciation expense

    = $162,500 - $80,000 - $3,300 - $9,000 - $22,295 + $9,000

    = $56,905

    The interest expense should not be considered in the computation part. Hence, ignored it
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