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Chevelle inc has sales of 39,500 costs of 18,400 depreciation expense of 1,900 and interest expense of 1400. if the tax rate is 21 percent, what is the operating cash flow, or OCF
Chevelle inc has sales of 39,500 costs of 18,400 depreciation expense of 1,900 and interest expense of 1400. if the tax rate is 21 percent, what is the operating cash flow, or OCF
The operating cash flow, orOCFwill be 23,502, if the tax rate is given 21 percent.Chevelle inc has sales of 39,500 costs of 18,400depreciation expenseof 1,900 andinterest expenseof 1400.Thetax rateis 21 percent.TheOperating Cash Flow (OCF)of Chevelle Inc. can be calculated as follows:OCF= Net Income + Non-Cash Expenses + Changes in Working CapitalNet Income= Sales - Costs - Depreciation - InterestOCF = 39,500 - 18,400 - 1,900 - 1,400 + (Tax Rate x (Sales - Costs - Depreciation - Interest))OCF = 19,700 + (0.21 x (39,500 - 18,400 - 1,900 - 1,400))OCF = 19,700 + (0.21 x 18,200)OCF = 19,700 + 3,802OCF = 23,502For more such questions onOperating Cash Flow (OCF).brainly.com/question/18513143##SPJ11...
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