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Bi-Lo Traders is considering a project that will produce sales of $36,750 and have costs of $21,500. Taxes will be $3,800 and the depreciation expense will be $2,125. An initial cash outlay of $1,750 is required for net working capital. What is the project's operating cash flow?

Respuesta :

abiolataiwo2015

Answer:

$11,450

Explanation:

Calculation for the project's operating cash flow

Using this formula

Operating cash flow=Sales-Costs-Taxes

Let plug in the formula

Operating cash flow = $36,750 − 21,500 − 3,800

Operating cash flow= $11,450

Therefore the project's operating cash flow will be $11,450

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