A proposed new project has projected sales of $177,000, costs of $89,000, and depreciation of $24,600. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches

Respuesta :

Answer:

Operating Cash flow 72,784

Explanation:

sales                              177,000

cost                               (89,000)

depreciation                (24,600)  

income before taxes     63,400

income tax expense

63,400 x24%                (15,216)    

Net income                     48,184

1)

net income + non monetary term (depreciation)

48,184 + 24,600 = 72,784

2) direct method

collected from customer 177,000

payment to supplier        (89,000)

tax paid                             (15,216)

cash flow                           72.784‬

3)  EBIT + depreciation - taxes

63,400 -15,216 + 24,600 = 72.784‬

Q&A Education