Answer:
Operating cash flow= 30,160
Explanation:
Giving the following information:
Bennett Co. has a potential new project that is expected to generate annual revenues of $255,800, with variable costs of $141,200, and fixed costs of $59,200. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $21,000. The annual depreciation is $23,800 and the tax rate is 40 percent.
Revenues= 255,800
Variable cost= 141,200 (-)
Fixed cost= 59,200 (-)
Interest= 21,000 (-)
Depreciation= 23,800 (-)
EBT= 10,600
Tax= 4240 (-)
Depreciation= 23,800
Operating cash flow= 30,160
