Answer :
The company pays no interest. Operating cash flow: $99790
Operating cash flow = (Cost of sales) (1 tax rate) + Tax savings from depreciation
= (911400-787300)*(1-0.34)+(0.34*52600)
= $99790 .
Operating Cash flow (OCF) is a measure of the amount of cash generated by a company's normal operations. Operating cash flow indicates whether a company can generate enough positive cash flow to sustain and grow its business. If not, external funding may be required for capital expansion.
Operating cash flow (OCF), cash flow from operating activities, cash flow from operating activities (CFO), or free cash flow from operating activities (FCFO) refers to the amount of cash a company generates from the income it generates, Excluding associated costs. Long-term investments in capital goods or investments in securities. [1] Operating activities include expenses or sources of funding associated with the company's day-to-day business activities.
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