Rtf oil has total sales of $911,400 and costs of $787,300. Depreciation is $52,600 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?.



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.

Learn more about Operating cash flow here: https://brainly.com/question/25530656

#SPJ4

Other Questions